Mobility Energy and Transportation
From cell to scale: Mapping India's EV battery supply ecosystem
05 Jun 2025
India’s electric mobility transition hinges not
just on vehicle adoption, but on the country’s ability to build robust,
end-to-end battery supply chains. With battery packs accounting for 35–45%
of an EV’s total cost, they remain the single most expensive component of
EV manufacturing. Historically, India has relied heavily on imports, for
battery cells and modules. But that is changing.
A combination of policy support, domestic
resource discoveries, and rising private investments is catalysing India’s
shift from a battery assembly base to a full-stack manufacturing hub. This
newsletter unpacks that evolution, from demand growth to deep manufacturing and
innovation capability.
Battery demand and manufacturing outlook
As shown in Exhibit 1, India’s EV battery
market is projected to grow from US$ 1.3B in FY24 to ~US$ 14B by FY30,
at a CAGR of 49%. Annual domestic battery manufacturing capacity is
expected to increase more than twentyfold, from 5 GWh in FY23 to 104 GWh by
FY30.
Exhibit 1 – EV battery
opportunity size
Battery manufacturing landscape
As shown in Exhibit 2, this scale-up is
being driven by a mix of global and Indian players entering the market across
cell manufacturing, module integration, and technology development. Historically
dependent on imports, India is now witnessing strong local activity, from
established manufacturers to new entrants setting up gigafactories.
Exhibit
2 -
Battery manufacturing landscape
Breaking down the battery pack
At the core of this transformation lies the
battery pack itself. As illustrated in Exhibit 3, six key components
make up a battery cell: anode, cathode, electrolyte, separator, current
collector, and packaging. The cathode alone contributes 21–42% of the
cell cost, followed by packaging (23–29%), current collectors
(16–22%), and anodes (11–15%). These components define both the cost
structure and performance of the battery. While global players dominate
upstream component manufacturing today, India’s localization ambitions are
strongest here. Building capability in these high-cost components will be
critical to reducing import reliance and enhancing supply chain resilience.
Exhibit 3 – Battery pack key
components and cost structure
Mapping the battery value chain
EV battery production is a multi-stage process, from
raw material extraction to recycling and second-life applications.
As shown in Exhibit 4, India’s opportunity lies in selectively building
competitive advantage across various stages of this chain. Upstream, India
currently imports ~70% of its Li-ion battery needs, but this is expected
to shift with lithium sourcing, investments in refining, and raw material
processing. Midstream, the country already has a growing presence in cell
and module assembly. Downstream, battery recycling technologies are
gaining traction.
Exhibit 4- Battery value chain and India's potential areas of play
India’s battery chemistry playbook
Not all batteries are the same. As seen in Exhibit
5, four battery chemistries define the global market today:
- Lead-acid: Mature, low-cost,
recyclable, but low energy density
- Lithium-ion: Commercial
standard, high energy density, fast charging
- Sodium-ion: Eco-friendly,
low-cost, but lower performance
- Flow batteries: Nascent, long-life,
stable, and ideal for grid use
While China and the U.S. lead production of
next-gen chemistries, India’s presence in lithium-ion, sodium-ion, and flow
technologies remains limited. This gap signals a clear opportunity. To
remain relevant and competitive, India must rapidly invest in emerging battery
technologies that power both vehicles and broader energy systems.
Exhibit 5 – Battery chemistry types and India’s position
Conclusion
India’s battery ecosystem is expanding from fragmented
assembly to full-stack capability. With strong tailwinds from industrial
policy, rising demand, and early-stage localization efforts, the foundations
are in place. But the real test is ahead. Scaling to 104 GWh by FY30 is not
just about adding capacity; it is about building strategic depth across the
supply chain. This means investing in critical components, new chemistries, and
circular models like reuse and recycling. The goal is not just importing
substitution but creating global leadership through IP ownership and
manufacturing scale.
The next decade will define whether India
becomes a global hub or remains a late-stage assembler, in the battery supply
chain.