India Lithium-Ion Battery Market Size, Share, Trends and Forecast by Product Type, Power Capacity, Application, and Region, 2026-2034

India Lithium-Ion Battery Market Summary: 

The India lithium-ion battery market size was valued at USD 3.59 Billion in 2025 and is projected to reach USD 9.79 Billion by 2034, growing at a compound annual growth rate of 11.78% from 2026-2034.   

The India Li-ion battery industry is registering rapid growth due to rising applications of Li-ion batteries in consumer electronics, electric vehicles, and renewable storage systems. The industry is also gaining from supportive government policies that encourage the adoption of clean energy and local manufacturing capacity. The increased adoption of smartphones, electric mobility projects, and the incorporation of renewable energy resources within power grids is offering great opportunities. 

Key Takeaways and Insights: 

• By Product Type: Lithium iron phosphate dominates the market with a share of 30.06% in 2025, driven by its superior thermal stability, enhanced safety profile, and cost-effectiveness for electric vehicle and energy storage applications. 

• By Power Capacity: 0 to 3000mAh leads the market with a share of 40.12% in 2025, owing to extensive utilization in smartphones, tablets, wearables, and portable consumer electronic devices. 

• By Application: Consumer electronics dominates the market with a share of 35.15% in 2025, fueled by rising smartphone penetration, growing demand for laptops, and increasing adoption of smart devices. 

• By Region: North India leads the market with a share of 33% revenue share in 2025, attributed to advanced manufacturing infrastructure, proximity to key raw materials, and robust presence of electric vehicle and renewable energy sectors. 

• Key Players: The India lithium-ion battery market exhibits a moderately competitive landscape characterized by the presence of established domestic manufacturers and international technology providers. Market participants are focusing on capacity expansion, strategic partnerships, and technological innovation to strengthen their market positioning and capitalize on the growing demand for advanced battery solutions. 

The India lithium-ion battery market is undergoing a transformative phase supported by the government's emphasis on clean energy transition and indigenous manufacturing through initiatives such as the Production-Linked Incentive scheme and FAME program. Exide Energy Solutions aims to launch a 6 GWh lithium‑ion cell facility in Bengaluru by FY 26-end, becoming one of India’s largest domestic cell production projects. The country's ambitious targets for electric vehicle adoption and renewable energy capacity expansion are creating sustained demand for high-performance battery solutions. Domestic manufacturers are investing significantly in research and development to enhance energy density, improve charging speeds, and extend battery lifecycle. The growing ecosystem of battery component suppliers, cell manufacturers, and recycling facilities is strengthening the local supply chain and reducing import dependency. Strategic collaborations between international technology leaders and Indian industrial houses are accelerating technology transfer and capacity building in the sector. 

India Lithium-Ion Battery Market Trends: 

Emergence of Gigafactories and Domestic Manufacturing Expansion 

The India lithium-ion battery landscape is witnessing significant investment in large-scale manufacturing facilities aimed at reducing import dependency and achieving self-sufficiency. Both public and private stakeholders are establishing gigafactories aligned with Make in India and Atmanirbhar Bharat initiatives. In January 2025, the International Battery Company, in partnership with Mahanagar Gas, plans to start its Bengaluru gigafactory within nine months, producing lithium‑ion cells locally and generating around 300 jobs. These facilities are designed to produce lithium cells and battery packs at competitive costs while stimulating job creation, fostering innovation, and developing supporting industries across the value chain. 

Second-Life Battery Applications Gaining Traction 

The utilization of retired electric vehicle batteries for stationary energy storage applications is emerging as a sustainable and cost-efficient trend. This approach extends the useful life of batteries beyond their automotive application, supports renewable energy integration, and reduces environmental impact. JSW MG Motor India’s “Project Revive” launched multiple BESS using reconditioned EV batteries, including a fourth project in early 2025, offering scalable storage and reducing operational costs up to 60%. Market participants are establishing dedicated recycling and refurbishment facilities to capitalize on the growing volume of end-of-life batteries and extract value from spent cells through material recovery processes. 

Advancements in Fast Charging Technologies 

Breakthroughs in rapid charging technologies are transforming the lithium-ion battery landscape by significantly reducing charging duration for electric vehicles and electronic devices. In 2025, CATL unveiled its second‑generation Shenxing battery, enabling up to 520 km of EV range in five minutes, advancing ultra‑fast charging performance. Development of high-speed chargers and upgraded battery formulations are enhancing user convenience and accelerating electric mobility adoption. Battery manufacturers are investing in electrode design optimization and electrolyte composition improvements to enable faster ion transport without compromising safety or cycle life. 

Market Outlook 2026-2034: 

The India lithium-ion battery market outlook remains highly positive, driven by accelerating electric vehicle adoption, expanding renewable energy storage requirements, and growing consumer electronics demand. Government policy support through production incentives, reduced taxation, and infrastructure development is creating a conducive environment for sustained market expansion. The discovery of domestic lithium reserves and ongoing investments in battery material production are expected to strengthen supply chain resilience.  The market generated a revenue of USD 3.59 Billion in 2025 and is projected to reach a revenue of USD 9.79 Billion by 2034, growing at a compound annual growth rate of 11.78% from 2026-2034. 

India Lithium-Ion Battery Market Report Segmentation: 

Product Type Insights: 

• Lithium Cobalt Oxide 
• Lithium Iron Phosphate 
• Lithium Nickel Manganese Cobalt 
• Lithium Manganese Oxide 
• Others (Li-ion Nickel Cobalt Aluminium Oxide and Li-ion Titanate Oxide) 

The lithium iron phosphate dominates with a market share of 30.06% of the total India lithium-ion battery market in 2025.  

Lithium iron phosphate batteries are gaining significant traction in the India market owing to their exceptional thermal stability and enhanced safety characteristics compared to other lithium-ion chemistries. These batteries demonstrate superior resistance to thermal runaway, making them particularly suitable for electric vehicle applications where safety is paramount. In September 2025, Kinetic India launched its first indigenously developed LFP battery at Ahilya Nagar, AIS 156-certified for Kinetic DX scooters and future EV two‑ and three‑wheelers, boosting domestic LFP adoption.  

The growing preference for Lithium iron phosphate batteries is further supported by their environmental compatibility as they do not contain cobalt or nickel, reducing concerns related to ethical sourcing and supply chain vulnerabilities. Indian manufacturers are increasingly adopting this chemistry for electric two-wheelers, three-wheelers, and energy storage systems due to its favorable cost-performance ratio and alignment with domestic manufacturing capabilities. The chemistry offers excellent cycle life performance, enabling thousands of charge-discharge cycles without significant capacity degradation. 

Power Capacity Insights: 

• 0 to 3000mAh 
• 3000mAh to 10000mAh 
• 10000mAh to 60000mAh 
• More than 60000mAh 

The 0 to 3000mAh leads with a share of 40.12% of the total India lithium-ion battery market in 2025.  

The low power capacity segment leads the Indian battery market, driven by the widespread use of portable consumer electronics. Smartphones are the primary demand catalyst, as India ranks among the largest global markets. Rising availability of affordable devices, coupled with expanding internet connectivity, is fueling consistent demand for compact, lightweight batteries. This capacity range is increasingly preferred for its portability, efficiency, and suitability for powering a wide array of small electronic gadgets. 

Apart from smartphones, low power capacity batteries ( 0 to 3000mAh) are widely used in tablets, wearables, wireless earbuds, portable speakers, and other personal electronics. The segment benefits from ongoing miniaturization and consumers’ preference for slim, portable devices. Manufacturers are prioritizing higher energy density within this compact form factor to extend device runtime without increasing size. These advancements allow devices to remain lightweight and convenient while meeting growing performance and usage demands. 

Application Insights: 

• Consumer Electronics 
• Electric Vehicles 
• Energy Storage 
• Others 

The consumer electronics dominates with a market share of 35.15% of the total India lithium-ion battery market in 2025.  

Consumer electronics continues to represent the largest application segment driven by India's position as one of the world's largest consumer electronics markets. The rapid adoption of smartphones, laptops, tablets, and wearable devices is generating sustained demand for high-performance lithium-ion batteries. Contract manufacturer Dixon Technologies, assembling devices like Google Pixel phones, expects to more than double fiscal 2025 revenue, highlighting growing domestic electronics manufacturing and rising battery and component demand. Rising disposable incomes, increasing digitization, and growing internet penetration are supporting expansion across urban and rural markets. 

The segment is further bolstered by India’s rise as a key electronics manufacturing hub, attracting global brands to set up production facilities. Government policies promoting domestic electronics production are driving demand for locally made battery cells and packs. Additionally, the rollout of next-generation telecommunications networks is fueling the need for devices with higher battery performance, capable of supporting increased power consumption and delivering longer runtimes for smartphones, wearables, and other connected electronics. 

Regional Insights: 

• North India 
• West and Central India 
• South India 
• East India 

North India exhibits a clear dominance with a 33% share of the total India lithium-ion battery market in 2025.  

North India leads the market due to its concentration of major industrial hubs, including Delhi, Haryana, Uttar Pradesh, and Rajasthan. The region benefits from robust manufacturing infrastructure, closeness to key consumption centers, and a skilled labor pool. State-level government initiatives, such as investment incentives and land allocation for battery production facilities, are attracting substantial capital inflows, further strengthening the region’s position as a preferred destination for lithium-ion battery manufacturing and related electronic industries. 

The region’s dominance is strengthened by major automotive manufacturing clusters, boosting demand for electric vehicle batteries. The discovery of lithium reserves in Rajasthan has raised optimism about future raw material availability. North India’s role as a hub for consumer electronics distribution, coupled with increasing adoption of rooftop solar systems with battery storage, is creating diverse demand across multiple application segments, further solidifying the region’s strategic importance in the country’s battery market. 

Market Dynamics: 

Growth Drivers: 

Why is the India Lithium-Ion Battery Market Growing? 

Accelerating Electric Vehicle Adoption and Government Policy Support 

The Indian government's commitment to electric mobility represents a fundamental driver for lithium-ion battery demand. In fact, the India electric vehicle market size was valued at USD 2,360.97 Million in 2024, and is projected to reach USD 1,64,420.39 Million by 2033 according to IMARC Group, underscoring strong demand growth linked to policy support and EV adoption trends. Ambitious targets for electric vehicle penetration across private cars, commercial vehicles, and two-wheelers by the end of this decade are creating sustained market momentum. The extension and enhancement of the FAME scheme with increased subsidy provisions and charging infrastructure development is accelerating consumer adoption. State-level policies offering additional incentives, reduced registration fees, and dedicated lanes for electric vehicles are complementing central government initiatives. Major automotive manufacturers have announced substantial investments to expand electric vehicle production capacity, directly translating into battery procurement volumes. 

Expanding Renewable Energy Integration and Storage Requirements 

India's ambitious renewable energy targets are creating substantial demand for battery energy storage systems to manage the intermittent nature of solar and wind power generation. The country's progress in deploying utility-scale solar and wind capacity necessitates flexible, efficient storage solutions to ensure grid stability and maximize renewable energy utilization. Lithium-ion batteries offer optimal characteristics including high round-trip efficiency, rapid response times, and declining costs that make them increasingly viable for grid-scale applications. The growing installation of rooftop solar systems in residential and commercial buildings is generating demand for behind-the-meter storage solutions. 

Production-Linked Incentive Scheme and Indigenous Manufacturing Growth 

The government's Production-Linked Incentive scheme for Advanced Chemistry Cell manufacturing is catalyzing domestic production capacity expansion and attracting significant investments from both Indian industrial houses and international technology providers. In February 2025, the Ministry of Heavy Industries partnered with Reliance New Energy Battery for 10 GWh Advanced Chemistry Cell production under the ₹18,100 crore PLI scheme, advancing large-scale domestic cell manufacturing. The scheme provides financial incentives distributed over multiple years to support large-scale battery cell manufacturing within the country. Companies are establishing gigafactory-scale facilities that will reduce import dependency, create employment opportunities, and strengthen the domestic supply chain. 

Market Restraints: 

What Challenges the India Lithium-Ion Battery Market is Facing? 

Raw Material Import Dependency and Supply Chain Vulnerabilities 

India currently relies heavily on imports for critical battery raw materials including lithium, cobalt, and nickel, exposing the market to supply chain disruptions and price volatility. The concentration of lithium processing capacity in select geographies creates procurement challenges and affects cost competitiveness of domestically manufactured batteries. 

High Initial Capital Investment Requirements 

Establishing advanced battery manufacturing facilities requires substantial capital investment in specialized equipment, cleanroom infrastructure, and quality control systems. The technology-intensive nature of cell manufacturing and the requirement for precision engineering capabilities present barriers to entry for domestic manufacturers without access to technology partnerships. 

Limited Charging Infrastructure and Consumer Awareness 

The inadequate development of charging infrastructure, particularly in smaller cities and rural areas, constrains electric vehicle adoption and associated battery demand. Consumer awareness regarding battery technology, maintenance requirements, and total cost of ownership remains limited, affecting purchase decisions. 

Competitive Landscape: 

The India lithium-ion battery market exhibits a moderately fragmented competitive structure with established domestic manufacturers competing alongside international technology providers. Key international firms maintain market presence through advanced technologies and large-scale production capabilities while Indian companies are making significant progress supported by government incentives and growing local demand. Market participants are pursuing strategies encompassing capacity expansion, vertical integration, technology licensing arrangements, and strategic partnerships to strengthen competitive positioning. Companies are investing in research and development to enhance energy density, improve safety characteristics, and reduce manufacturing costs. The competitive landscape is expected to intensify as new entrants establish manufacturing facilities under the Production-Linked Incentive scheme and existing players scale up operations to capture growing demand. 

Recent Developments: 

• In September 2025, Japanese electronics giant TDK Corporation inaugurated a ₹3,000 crore lithiumion battery plant in Sohna, Haryana, producing 20 crore packs annually for phones, wearables, and laptops, meeting ~40% of India’s demand. The facility will generate 5,000+ jobs and boost domestic electronics 

India Lithium-Ion Battery Market Report Scope: