Can India Come Out of Its Battery Import Dependency?

Entrepreneur

03-06-2025

India's battery market is expanding rapidly, technologies are evolving, and policies are aligning—but until the country secures control over its supply chains and critical resources, its battery ambitions will continue to ride on a fragile charge
Opinions expressed by Entrepreneur contributors are their own.
You're reading Entrepreneur India, an international franchise of Entrepreneur Media.
Batteries are now indispensable to India's energy future. From powering electric vehicles to storing solar and wind energy, their role is central. Yet, behind this surge lies a fragile foundation—one marked by critical raw material dependency, technological gaps, and underdeveloped infrastructure. India's reliance on imported materials, especially lithium, cobalt, and nickel, presents a structural vulnerability. These critical minerals are sourced from a handful of countries like China, Chile, and Australia, leaving the Indian battery supply chain exposed to geopolitical friction, pricing shocks, and shipment delays. This, together with India's limited capacity to refine or process these raw materials locally, calls for a shift in strategy.
India's battery market is growing at breakneck speed, fuelled by the country's aggressive push toward electrification, rising energy demand, and a government-backed shift to clean technologies. According to a report by ResearchAndMarkets, the sector was valued at USD 10.45 billion in 2025 and is projected to nearly double to USD 20.24 billion by 2031, rising at a compound annual growth rate (CAGR) of 11.48 per cent.
There is a shift from traditional lead-acid to lithium-ion batteries, these newer chemistries, particularly lithium iron phosphate (LFP) and nickel manganese cobalt (NMC), offer higher energy density, faster charging, and longer life spans, making them essential for applications ranging from urban mobility to grid stability. One of the most promising developments lies in battery recycling.
Anupam Kumar, CEO, MiniMines, said, "With nearly 75 per cent of batteries in India still imported, there's a growing recognition that recycling is not just about waste management, but resource security. Recovering valuable materials such as lithium, cobalt, and nickel from used batteries will support local manufacturing and decrease reliance on imports." Recycling also feeds into the broader goal of a circular economy, where resources are reused rather than discarded.
Rajesh Gupta, director, Recyclekaro, echoes this sentiment. "India is also likely to see a parallel growth in battery recycling and second-life use, essential to reducing import dependence on critical minerals," he notes. This evolution is being nudged along by growing demand from sectors beyond EVs—such as telecom, data centers, and solar—further deepening the battery market's reach into India's economic fabric.
This optimism is backed by a suite of policy interventions. Schemes like the Production Linked Incentive (PLI) for Advanced Chemistry Cells, FAME, and the National Electric Mobility Mission Plan are pushing the sector toward domestic self-reliance. Yet, it's clear that policy is just one piece of a much larger puzzle.
Dr. Aanchal Jain, CEO of PMI Electro Mobility, believes India is "Entering a high-growth phase, shaped by clear policy direction and a growing demand for clean energy solutions." She points out that as giga-factories begin to scale and supply chains solidify, India will inch closer to being both a producer and exporter of advanced battery technologies.
Pulkit Khurana, co-founder & CEO, Battery Smart, gives another alternative, "The Indian battery market is witnessing accelerated growth, driven by a confluence of factors," but the dependence on imports and the lack of a resilient supply chain loom large. "Battery swapping has emerged as a critical enabler," he says, citing the rising demand for cost-effective, scalable solutions in Tier I, II, and III cities. "With domestic cell manufacturing gaining traction, reliance on imports will reduce, and supply chains will strengthen." Read More
Currently, India imports almost its entire requirement of Li-ion batteries. However, CareEdge Ratings expects India's import dependency to decline to approximately 20 per cent by FY27, despite significant growth in demand due to large-scale integrated capacities being built for Li-ion battery storage. Lithium-ion production is increasing, and alternative chemistries like sodium-ion and solid-state batteries are gaining traction. These innovations could reduce the sector's dependency on materials like cobalt, which are not only scarce but also raise environmental and ethical concerns due to mining practices.
The convergence of government incentives, clean energy targets, and rising consumer awareness is reshaping both supply and demand. The drive for local manufacturing, including lithium-ion cell production, is also fostering market self-reliance. "We anticipate strong growth over the next five years, particularly in energy storage systems, electric vehicle batteries, and grid stability solutions," Mukesh Gupta, marketing head, MaxVolt Energy Industries.
Still, despite this momentum, the structural deficiencies cannot be ignored. India's current dependence on imported cells, limited processing infrastructure, and fragmented supply chains make it highly susceptible to disruption. Building a resilient battery industry will require not just investment in manufacturing, but in upstream capabilities like mining, refining, and recycling. It will also demand international partnerships, robust R&D, and localized innovations suited to India's climate and mobility patterns.
In short, India's battery story is one of both promise and pressure. The market is expanding rapidly, technologies are evolving, and policies are aligning—but until the country secures control over its supply chains and critical resources, its battery ambitions will continue to ride on a fragile charge.