The lithium-ion (Li-ion) battery market in India is poised for substantial growth by 2025, and its market share across various sectors is shifting in response to new technological innovations and emerging consumer demands. With the country’s increasing focus on sustainability, electric vehicles (EVs), and renewable energy, the lithium-ion battery market is undergoing a transformative phase. In this article, we explore the factors influencing the market share dynamics of
India lithium-ion battery market and the key trends expected by 2025.
- Electric Vehicles and Market Share
One of the most influential drivers of the lithium-ion battery market in India is the booming electric vehicle (EV) sector. India has set an ambitious goal of ensuring that 30% of all vehicles on the road are electric by 2030. The government’s initiatives, such as the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme, have incentivized both consumers and manufacturers to shift towards electric mobility. As the number of electric vehicles grows, so does the demand for lithium-ion batteries, which are essential for EVs due to their high energy density and long lifespan.
By 2025, the share of lithium-ion batteries used in electric vehicles is expected to account for a substantial portion of the market. The EV sector, especially electric two-wheelers and buses, is likely to dominate the market share in India, propelling the lithium-ion battery segment to new heights. India’s growing EV adoption will drive the demand for these batteries, boosting their contribution to the overall market and shaping the future of sustainable transportation.
- Renewable Energy Storage Growth
Another key sector contributing to the growing market share of lithium-ion batteries is the renewable energy sector. India is aggressively working toward increasing its renewable energy capacity, with a target of achieving 500 GW from non-fossil sources by 2030. However, renewable energy like solar and wind is intermittent, which creates the need for efficient energy storage solutions. Lithium-ion batteries, with their ability to store large amounts of energy, are becoming the preferred choice for grid-scale energy storage systems.
By 2025, the share of lithium-ion batteries used for energy storage will grow significantly. Solar power installations, especially in rural and remote areas, and large-scale wind energy projects will rely heavily on lithium-ion batteries to store excess power for later use. As India’s commitment to renewable energy intensifies, the contribution of lithium-ion batteries in this sector will expand, further solidifying its market share.
- Local Manufacturing and Market Share Expansion
India’s push for local manufacturing will also influence the market share dynamics. Currently, India is heavily dependent on imports of lithium-ion batteries, primarily from China. However, the government’s initiatives such as the Production-Linked Incentive (PLI) scheme are designed to boost domestic battery manufacturing. Several Indian and international players, including Tata Chemicals, Exide Industries, and LG Chem, are setting up manufacturing facilities within the country.
By 2025, local production is expected to account for a larger share of the lithium-ion battery market, reducing dependency on imports. This shift in the supply chain will not only strengthen India’s position in the global market but also make lithium-ion batteries more affordable, driving increased adoption across sectors.
- Technological Advancements and Competitive Landscape
Technological advancements will continue to reshape the lithium-ion battery market share. Improvements in battery efficiency, energy density, and cost reductions will drive higher demand for these batteries. Innovations such as solid-state batteries and alternative chemistries are expected to enhance the performance and safety of lithium-ion batteries, further boosting their adoption in India’s key sectors.
By 2025, the market share will see a more diversified competitive landscape, with both established companies and startups contributing to the growing battery ecosystem. As a result, companies that can leverage these technological advancements will secure a larger share of the market.
- Government Policies and Strategic Shifts
Government policies are one of the most critical factors influencing the lithium-ion battery market share in India. Through supportive schemes such as the FAME program, the government is encouraging the growth of electric vehicles and energy storage systems, both of which rely heavily on lithium-ion batteries. Additionally, initiatives to develop local battery manufacturing capabilities will ensure that India’s market share in the global battery manufacturing industry increases by 2025.
The government’s focus on sustainability, renewable energy, and electric mobility is likely to continue shaping the lithium-ion battery market share in India. By 2025, favorable policies are expected to contribute to the overall expansion of the lithium-ion battery sector, with India emerging as a key player in the global market.
Conclusion
By 2025, the lithium-ion battery market in India is set to witness substantial growth, with a marked increase in market share across key sectors such as electric vehicles, renewable energy storage, and local manufacturing. Technological advancements, favorable government policies, and the increasing adoption of electric mobility will all play crucial roles in expanding the market share of lithium-ion batteries. As India moves toward a more sustainable future, lithium-ion batteries will become a vital component of the nation’s energy landscape, reshaping its market dynamics and establishing India as a global leader in the battery market.
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