India Lithium-ion Battery Market: Current Analysis and Forecast (2022-2030)

India Lithium-ion Battery Market: Current Analysis and Forecast (2022-2030)

The Indian lithium-ion battery market is expected to grow significantly during the forecast period due to increasing demand for electric vehicles (EVs) and the growing need for renewable energy sources. The Indian government's push for EV adoption and the introduction of favorable policies and incentives for EV battery manufacturers are also driving market growth. Furthermore, the availability of raw materials has attracted investments in lithium-ion battery manufacturing facilities in East India. Moreover, the region has shown significant potential in the renewable energy sector, with a growing focus on solar and wind energy projects. This has further driven the demand for lithium-ion batteries by major companies and startups for energy storage purposes and EVs. For instance, EV battery start-up Pointo has raised USD 3 million in funding from investors for its expansion into 20 districts of West Bengal. The EV company, backed by Mufin Finance, stated that 4MW li-ion batteries will be deployed in West Bengal by 2024.

The India lithium-ion battery market was valued at 1,067.80 Mn in year 2021 and is expected to grow at a CAGR of around 18.5% during the forecast period (2022-2030) owing to growing renewable energy integration and a rise in government initiatives in the country. Moreover, the increasing demand for energy storage solutions for grid-connected renewable energy systems is also expected to boost the market for lithium-ion batteries in India.

• Based on battery type, the market is segmented into lithium cobalt oxide, lithium iron phosphate, lithium nickel manganese cobalt, lithium manganese oxide, and others. Among them, the lithium cobalt oxide category is expected to dominate the growth of the market during the forecast period (2022-2030). LCO batteries are widely used in consumer electronics such as smartphones, laptops, and tablets due to their high energy density and reliability. This makes them ideal for use in electric vehicles and renewable energy storage systems, where space is limited.
• On the basis of battery form, the market is categorized into cylindrical lithium-ion cell, prismatic lithium-ion cell, and lithium pouch cell. Among these, the prismatic lithium-ion cell held a significant share of the market in 2021. This is mainly due to the growing number of companies offering prismatic batteries at competitive prices is making them more widely available, which is further boosting the demand. For instance, in 2022, BEL established a pilot plant for Li-Ion prismatic cell development and manufacturing in Gujarat.
• Based on power capacity, the India lithium-ion battery market has been classified into 0 to 3000mAh, 3000 to 10000mAh, 10000 to 50000mAh, and more than 50000mAh. The 3000 to 10000mAh category dominates the growth of this segment during the forecast period. The 3000 to 10000mAh category of batteries has played a significant role in the growth of the lithium-ion battery market. Its ability to provide sufficient power for a range of devices and its growing popularity among consumers have contributed to the increasing demand for high-capacity batteries.
• For a better understanding of the market, the report is analyzed based on different regions including India (North India, East India, West India, and South India). North India dominated the India lithium-ion battery market in the country as the region is home to several major cities, including Delhi, Chandigarh, and Jaipur, which are experiencing rapid industrialization and urbanization. This has resulted in a growing demand for lithium-ion batteries across various sectors, such as automotive, consumer electronics, and renewable energy storage. Furthermore, government initiatives promoting electric vehicles and renewable energy adoption have also boosted the market in this region. For instance, the top four MoUs in the MSME (Micro, Small & Medium Enterprises) sector were all signed by Hong Kong's Tauschen International Pvt Ltd. In 2023. Tauschen E- Motors Pvt Ltd planned to invest 496.94 USD million (INR 4,100 crore) to establish manufacturing facilities for electric vehicles in Agra. Also, the company's Indian subsidiary will establish a lithium battery plant in Agra for which it had signed an MoU for an investment of INR 1,640 crore and is likely to invest a total of INR 10,000 crore in the project.
• Some of the major players operating in the market include Tata AutoComp Systems Ltd; LOOM SOLAR PVT. LTD.; TDSG; SAMSUNG SDI CO., LTD.; Bharat Electronics Limited (BEL); Panasonic Industry Co., Ltd.; TOSHIBA CORPORATION; Okaya Power Pvt. Ltd.; Hitachi High-Tech Corporation; Luminous India.

The India lithium-ion battery market was valued at 1,067.80 Mn in year 2021 and is expected to grow at a CAGR of around 18.5% during the forecast period (2022-2030) owing to growing renewable energy integration and a rise in government initiatives in the country. The Indian lithium-ion battery market is expected to grow significantly during the forecast period due to increasing demand for electric vehicles (EVs) and the growing need for renewable energy sources. The Indian government's push for EV adoption and the introduction of favorable policies and incentives for EV battery manufacturers are also driving market growth. For instance, by 2030, the Indian government intends to have a fleet that is 30% electric. In addition, the goods and services tax (GST) on EVs was reduced from 12% to 5% in July 2019 and income tax exemptions for potential EV buyers were announced by the Indian government. Moreover, the increasing demand for energy storage solutions for grid-connected renewable energy systems is also expected to boost the market for lithium-ion batteries in India.

Some of the major players operating in the market include Tata AutoComp Systems Ltd; LOOM SOLAR PVT. LTD.; TDSG; SAMSUNG SDI CO., LTD.; Bharat Electronics Limited (BEL); Panasonic Industry Co., Ltd.; TOSHIBA CORPORATION; Okaya Power Pvt. Ltd.; Hitachi High-Tech Corporation; Luminous India Several M&As along with partnerships have been undertaken by these players to facilitate customers with hi-tech and innovative products/technologies.

Insights Presented in the Report

“Amongst battery type, the lithium cobalt oxide category dominates the growth of the segment”

Based on battery type, the India lithium-ion battery market is segmented into lithium cobalt oxide, lithium iron phosphate, lithium nickel manganese cobalt, lithium manganese oxide, and others. Amongst them, the lithium cobalt oxide category dominates the growth of the segment. The use of LCO batteries has helped to drive the growth of the lithium-ion battery market in India, particularly in the electric vehicle and energy storage sectors. As demand for these applications continues to grow, it is likely that the use of LCO batteries will continue to play an important role in the development of India's energy infrastructure.

“Amongst battery form, the cylindrical lithium-ion dominates the lithium-ion battery market in the region”

Based on battery form, the India lithium-ion battery market is segmented into cylindrical lithium-ion cell, prismatic lithium-ion cell, and lithium pouch cell. Among them, cylindrical lithium-ion dominates the lithium-ion battery market in the region and will continue to attain during the forecast period as cylindrical batteries are more compact and space-efficient than other battery shapes such as prismatic or pouch cells. This makes it easier to integrate into the design of electric vehicles and allows for more flexibility in terms of the size and shape of the battery pack.

“North India dominated the India Lithium-Ion Battery Market in 2021”

North India dominated the India lithium-ion battery market in the country as the region is home to several major cities, including Delhi, Chandigarh, and Jaipur, which are experiencing rapid industrialization and urbanization. This has resulted in a growing demand for lithium-ion batteries across various sectors, such as automotive, consumer electronics, and renewable energy storage. Furthermore, government initiatives promoting electric vehicles and renewable energy adoption have also boosted the market in this region. For instance, the top four MoUs in the MSME (Micro, Small & Medium Enterprises) sector were all signed by Hong Kong's Tauschen International Pvt Ltd. In 2023. Tauschen E- Motors Pvt Ltd will invest Rs 4,100 crore to establish manufacturing facilities for electric vehicles in Agra. Also, the company's Indian subsidiary will establish a lithium battery plant in Agra for which it has signed an MoU for an investment of Rs 1,640 crore and is likely to invest a total of Rs 10,000 crore in the project.

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