India’s electric vehicle revolution is shifting into high gear — but its long-term success depends on one critical factor: localising the lithium and battery supply chain. As demand for electric two-wheelers, cars, and buses grows, the country faces a strategic challenge — reducing dependence on imported battery materials and securing domestic production capabilities.
The government’s focus on ‘Make in India for EVs’ has accelerated investment in lithium extraction, cell manufacturing, and recycling — paving the way for a self-reliant, sustainable energy ecosystem.
The Need for Battery Supply Chain Localisation
Currently, India imports more than 75% of its lithium-ion cells from China, South Korea, and Japan. This heavy reliance not only increases manufacturing costs but also creates vulnerabilities in global supply disruptions.
Key reasons driving India’s localisation push include:
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Strategic independence: Reducing exposure to global price shocks and political risks.
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Cost efficiency: Local manufacturing can cut EV battery prices by up to 25%.
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Job creation: Building gigafactories and material plants can generate thousands of skilled jobs.
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Sustainability: Domestic recycling and material recovery reduce waste and environmental impact.
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Economic growth: The EV battery ecosystem could contribute over $30 billion to GDP by 2030.
This localisation effort isn’t just about industrial policy — it’s about securing India’s place in the global clean energy race.
Major Government Initiatives Powering Local Production
The Indian government is taking proactive steps to establish a strong domestic battery industry through multiple programs and incentives.
| Initiative | Focus Area | Impact |
|---|---|---|
| PLI Scheme (Production Linked Incentive) | Advanced chemistry cell (ACC) manufacturing | ₹18,100 crore incentive for local gigafactories |
| National Mission on Transformative Mobility | Policy framework for EV battery manufacturing | Encourages local partnerships and innovation |
| Battery Waste Management Rules 2022 | Recycling & material recovery | Mandatory Extended Producer Responsibility (EPR) for manufacturers |
| India-Australia Lithium Pact | Resource sourcing | Ensures raw material access from Australia’s lithium reserves |
| Strategic Minerals Exploration Policy | Domestic resource mapping | Identifies lithium, cobalt, and nickel reserves in Indian states |
These measures are transforming India from a battery importer to a battery ecosystem builder, ensuring that every stage — from raw material sourcing to recycling — happens within national borders.
India’s Emerging Battery Hubs and Investments
Several Indian states are emerging as EV and battery manufacturing hubs, attracting both domestic and global players.
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Gujarat and Tamil Nadu: Becoming battery gigafactory zones, with major investments from Tata, Ola Electric, and Exide.
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Andhra Pradesh and Karnataka: Leading in lithium-ion cell production facilities.
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Rajasthan and Jammu & Kashmir: Identified for potential lithium reserves under geological exploration.
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Maharashtra and Delhi NCR: Expanding recycling and second-life battery applications.
Foreign collaborations with Panasonic, LG Energy, and CATL are further enhancing India’s technological capabilities in advanced cell design and thermal management.
The Role of Recycling and Second-Life Batteries
Battery recycling is emerging as one of the most critical components of India’s localisation journey. Companies like Attero Recycling, Lohum Cleantech, and Gravita India are building large-scale recycling facilities to recover valuable metals such as lithium, nickel, and cobalt.
Second-life batteries — repurposing used EV batteries for energy storage — are also gaining traction, reducing dependency on new raw materials and supporting the renewable energy grid.
This circular approach ensures that India’s battery supply chain remains economically viable and environmentally sustainable.
Challenges in Building a Self-Reliant Battery Supply Chain
Despite major progress, several challenges persist:
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Raw material scarcity: India has limited domestic lithium reserves.
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High setup costs: Building gigafactories requires billions in investment and technology transfers.
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Technology gaps: Dependence on foreign know-how for cell chemistry remains high.
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Policy coordination: Varying state-level regulations can delay infrastructure rollout.
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Environmental risks: Mining and disposal processes need strict sustainability oversight.
Addressing these challenges requires global partnerships, robust R&D, and stronger recycling ecosystems to ensure long-term resilience.
The Road Ahead for India’s Battery Ecosystem
By 2030, India aims to establish at least five major gigafactories and a fully integrated domestic battery manufacturing ecosystem. The goal is to ensure that every EV sold in India runs on batteries made, sourced, and recycled within the country.
The next frontier lies in solid-state and sodium-ion battery research, which can further reduce dependence on imported lithium while boosting performance and safety.
India’s journey to localise lithium and battery production isn’t just industrial evolution — it’s a national energy mission. The ability to control the full supply chain will define how fast, affordable, and sustainable India’s electric mobility truly becomes.
FAQs
Why is India focusing on local battery manufacturing?
Localisation reduces import dependency, lowers production costs, and strengthens national energy security.
Which companies are investing in India’s battery ecosystem?
Major players include Tata Chemicals, Ola Electric, Exide, Amara Raja, and Lohum Cleantech, among others.
Does India have its own lithium reserves?
Preliminary findings show lithium deposits in Jammu & Kashmir, Rajasthan, and Karnataka, but large-scale extraction is still in early stages.
What role does recycling play in localisation?
Battery recycling recovers key materials like lithium, nickel, and cobalt, reducing imports and supporting circular manufacturing.
What’s next for India’s EV battery industry?
India aims to scale solid-state battery research, expand gigafactory capacity, and become a global hub for sustainable energy storage solutions.
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