India’s Lithium-Ion Battery Demand To Surge 5x By 2030, Says Report
According to the report, India’s LiB demand is projected to touch 115 gigawatt hours (GWh) by 2030. The breakdown reveals a 3 per cent compound annual growth rate (CAGR) for consumer electronics
India’s lithium-ion battery (LiB) market is on the cusp of a transformative expansion, driven by surging demand across sectors such as consumer electronics, electric vehicles (EVs), and stationary storage systems. A recent study conducted jointly by the India Cellular and Electronics Association (ICEA) and Accenture outlines the trajectory of this booming segment and its implications for the country’s energy future.
According to the report, India’s LiB demand is projected to touch 115 gigawatt hours (GWh) by 2030. The breakdown reveals a 3 per cent compound annual growth rate (CAGR) for consumer electronics, 14 per cent for stationary storage, and an impressive 48 per cent CAGR for EVs, making electric mobility the dominant force behind this surge.
This growth aligns closely with India’s broader sustainability goals and its commitment to achieving net-zero emissions by 2070. “The expansion will be further reinforced by supportive policy measures promoting clean energy, battery cell manufacturing, and end-of-life battery management,” the report stated.
Despite this promising outlook, India currently faces significant barriers in its LiB ecosystem. Chief among them is the lack of domestic cell pack manufacturing and raw material mining infrastructure, making the country heavily dependent on imports. These imports involve critical battery-active materials such as Lithium, Cobalt, Nickel, and Manganese.
“India currently lacks Li-ion cell pack manufacturing capabilities and mining infrastructure, making it heavily reliant on imports of LiBs consisting of critical battery-active materials such as Lithium, Cobalt, Nickel, and Manganese,” the ICEA report read.
The cumulative demand for these materials from 2024 to 2030 is expected to exceed 250,000 tonnes, translating into an import burden of over USD 5 billion.
Policy Moves To Tackle Supply Chain Gaps
To counter these issues, the Indian government has introduced initiatives like the Critical Minerals Mission and duty exemptions on essential imports. The Central Pollution Control Board (CPCB) also launched the Battery Waste Management Rules (BWMR) 2022, designed to encourage recycling and reduce environmental damage caused by improperly disposed batteries.
The report highlights a concerning trend: nearly 39 per cent of used consumer electronics batteries are not collected for proper disposal or recycling.
Green Commitments Drive Market Reforms
India’s commitment at COP26 to a five-part “Panchamrit” strategy—such as achieving 500 GW of non-fossil electricity capacity, reducing emission intensity of GDP by 45 per cent, and reaching net-zero emissions by 2070—adds urgency to reforming its energy and storage infrastructure.
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