India Lithium Market To witness Huge Expansion By 2030

India Lithium Market Summary

The India lithium-ion battery market was valued at USD 573.07 million in 2023 and is projected to register a robust compound annual growth rate (CAGR) of 38.7% from 2024 to 2030. This significant growth can be attributed to the accelerating adoption of electric vehicles (EVs) across the country and the increasing integration of renewable energy sources, such as wind and solar, into the national power grid. These developments are creating substantial demand for reliable and efficient energy storage systems. Additionally, supportive government initiatives and favorable policies are further strengthening market expansion and fostering a sustainable energy ecosystem in India.

The transition towards cleaner and more sustainable transportation systems, aimed at curbing carbon emissions and mitigating the impact of climate change, is further driving the demand for lithium-ion batteries. These batteries serve as the primary energy storage solution in electric vehicles due to their compact design, lightweight properties, and long service life. According to data from the Ministry of Road Transport & Highways (MoRTH), India recorded the sale of 1,531,926 battery-operated vehicles (BOVs) in 2023, representing a substantial increase of 49.2% from the previous year, highlighting the growing public and commercial shift toward electric mobility.

Key Market Trends & Insights

• In terms of product segmentation, the lithium nickel manganese cobalt (NMC) battery segment led the Indian market with a dominant revenue share of 33.59% in 2023. This growth is propelled by the increasing global and domestic focus on decarbonization and the transition to clean, sustainable energy solutions. NMC batteries are particularly valued for their high energy density, long cycle life, and balanced performance, making them ideal for a wide range of applications including EVs and stationary energy storage systems.
• Based on components, the cathode segment emerged as the largest contributor to market revenue, accounting for a share of 48.93% in 2023. The demand for cathode materials is expected to rise significantly, driven by the growing deployment of electric vehicles and the increasing reliance on lithium-ion batteries for various energy storage purposes. The battery pack remains one of the most costly components of EVs, contributing approximately 40%–50% of the total vehicle cost, thus making efficient and high-performance cathode materials critically important.
• When assessed by capacity, lithium-ion batteries with a capacity range between 3,001 and 10,000 mAh dominated the market in 2023, capturing a revenue share of 34.17%. These mid-capacity batteries are in high demand across sectors such as consumer electronics, automotive, appliances, and aerospace. Their ability to power heavier loads and be modularly assembled into larger battery systems makes them especially useful in both individual and commercial applications requiring reliable and scalable power sources.
• In terms of voltage, the medium voltage segment (ranging from 12V to 36V) accounted for the largest revenue share of 46.30% in 2023. This segment’s growth is driven by the increased use of EVs and the rising demand for energy storage systems that utilize medium-voltage lithium-ion batteries. These batteries offer the right balance between performance and efficiency for powering a wide variety of electric mobility and energy backup solutions.
• Based on battery type, prismatic lithium-ion batteries held the dominant market share at 40.81% in 2023. Their structured casing and rectangular shape make them particularly advantageous for applications requiring thermal management and high energy density. These batteries are increasingly preferred in India due to their safety, reliability, and scalability, especially in electric vehicles and energy storage applications.
• On the basis of application, the consumer electronics segment led the market with a share of 28.28% in 2023. This growth is supported by rising disposable incomes and rapid technological advancements, which have spurred demand for high-performance portable electronic devices. As consumers continue to embrace smart devices, wearables, and advanced personal gadgets, the demand for efficient and compact energy storage solutions like lithium-ion batteries is witnessing consistent growth.
• Regionally, North India dominated the Indian lithium-ion battery market in 2023, accounting for over 44.00% of total revenue. The heightened pollution levels in urban centers such as Delhi and Chandigarh have prompted regional authorities to adopt alternative fuel solutions, thus stimulating the adoption of electric vehicles and, consequently, lithium-ion batteries. Furthermore, this region includes states and union territories such as Haryana, Himachal Pradesh, Punjab, Uttarakhand, Uttar Pradesh, Rajasthan, Delhi, Jammu & Kashmir, Ladakh, and Chandigarh. The region is also rich in lithium reserves, particularly in Rajasthan and Jammu & Kashmir, which presents long-term potential for domestic battery material sourcing.
• Southern India, which comprises Andhra Pradesh, Telangana, Karnataka, Kerala, and Tamil Nadu, plays a pivotal role in the national lithium-ion battery landscape due to its strong technological base. Bengaluru, located in Karnataka, is famously known as the Silicon Valley of India and serves as a major hub for innovation. The region’s extensive investment in research and development supports the introduction of new products and technologies in the lithium-ion battery segment.
• Eastern India—including Bihar, Jharkhand, Odisha, and West Bengal, along with the Andaman and Nicobar Islands—is expected to witness growth in the lithium-ion battery market primarily due to the increasing number of renewable energy projects being established in the region. These projects will boost the demand for robust and efficient energy storage systems.
• Western India encompasses Gujarat, Madhya Pradesh, Maharashtra, and Goa, as well as the union territories of Dadra & Nagar Haveli and Daman & Diu. The region is a major industrial and economic powerhouse, particularly Maharashtra and Gujarat, which host several manufacturing zones, automotive companies, and industrial clusters—making them key markets for lithium-ion battery demand and production.

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Market Size & Forecast

• 2023 Market Size: USD 1.43 billion
• 2030 Projected Market Size: USD 6.60 billion
• CAGR (2024-2030): 38.7%
• North India: Largest market in 2023

Key Companies & Market Share Insights

The market is experiencing significant growth, driven by a combination of technological advancements and increasing demand for renewable energy solutions. Companies are focusing on partnerships and collaborations to enhance their market positions and drive innovation.

Key Players

• Amara Raja Energy & Mobility Limited
• Exide Industries Limited
• Tata Chemicals Limited
• Luminous Power Technologies Pvt. Ltd.
• Okaya Power Private Limited
• HBL Power Systems Limited
• Panasonic Life Solutions India Private Limited
• Samsung SDI India Private Limited
• Loom Solar Pvt. Ltd.
• BYD India Private Limited

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Conclusion

The India lithium-ion battery market is witnessing rapid growth, fueled by electric vehicle adoption, renewable energy integration, and supportive government policies. With rising demand across consumer electronics, automotive, and industrial sectors, battery technologies such as NMC and prismatic cells are gaining significant traction. North India leads the market due to EV incentives and local lithium reserves, while regions like South India contribute through innovation and R&D. As the country moves toward decarbonization and energy independence, lithium-ion batteries will remain essential in powering future-ready solutions. This momentum is expected to continue, making India a key player in the global battery ecosystem.