India Battery Market, By Type (Lead Acid, Lithium Ion, Nickel Metal Hydride, Others), By Application (Residential, Industrial, Commercial), By Region, Competition, Forecast & Opportunities, 2021-2031F

Market Overview

India Battery Market was valued at USD 10.45 Billion in 2025 and is expected to reach USD 20.24 Billion by 2031 with a CAGR of 11.48% during the forecast period.

A battery is a device that stores chemical energy and converts it into electrical energy through electrochemical reactions. It typically consists of one or more electrochemical cells, each containing two electrodes: an anode (negative) and a cathode (positive), separated by an electrolyte. When a battery is connected to an external circuit, a chemical reaction occurs between the electrodes and the electrolyte, causing electrons to flow through the circuit and power electronic devices.

Batteries are essential in modern life, powering a wide range of devices from small electronics like smartphones and remote controls to larger applications such as electric vehicles and renewable energy systems. The performance of a battery is measured in terms of its voltage, capacity, and energy density. As technology advances, battery efficiency, longevity, and sustainability are continually improving to meet growing energy demands while reducing environmental impact.

Key Market Drivers

Rising Adoption of Electric Vehicles (EVs)

One of the most influential drivers of the Indian battery market is the increasing adoption of electric vehicles (EVs). India has set ambitious targets to transition towards sustainable mobility, with government policies such as the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme, which provides incentives for EV purchases and infrastructure development. This shift has significantly increased the demand for batteries, particularly lithium-ion types, which are essential components in electric two-wheelers, cars, buses, and even commercial vehicles.

The rise of EVs is also being fueled by rising fuel costs, growing environmental concerns, and urban air pollution. Indian cities are among the most polluted in the world, prompting both consumers and policymakers to consider cleaner transport alternatives. As a result, battery technology is becoming a central part of India’s strategy to reduce carbon emissions and dependency on fossil fuels. In addition to passenger vehicles, the logistics and delivery sectors are increasingly adopting electric mobility. Companies like Amazon, Flipkart, and Zomato have started electrifying their fleets, creating further demand for batteries. Moreover, startups and established automobile manufacturers are investing heavily in R&D to produce efficient, affordable, and locally manufactured battery packs, reducing dependency on imports.

The EV boom has also spurred the development of battery-swapping infrastructure and charging networks, which further increases battery usage and turnover. As this ecosystem grows, it creates a positive feedback loop—greater battery demand leads to more investment in technology and infrastructure, which, in turn, boosts adoption rates. This expanding market creates opportunities not only for battery manufacturers but also for suppliers of raw materials, recyclers, and service providers. India's EV sales experienced substantial growth, with over 2 million units sold in 2024, marking a 24% increase from the previous year. This surge is indicative of a growing consumer shift towards electric mobility

Government Initiatives and Policy Support

The Indian government has emerged as a key enabler in the growth of the battery market by implementing supportive policies and offering financial incentives. These measures are aimed at promoting domestic battery manufacturing, reducing import dependency, and accelerating the country’s transition toward clean energy.

One major initiative is the Production-Linked Incentive (PLI) scheme for Advanced Chemistry Cell (ACC) battery storage, which allocates substantial financial support to domestic manufacturers that achieve high energy density and performance standards. This initiative has attracted significant interest from both domestic and international firms, spurring investments in gigafactories and related supply chains.

The National Electric Mobility Mission Plan (NEMMP) and the FAME schemes have been central to promoting electric mobility and, by extension, the battery sector. These policies provide direct subsidies for electric vehicles and infrastructure development, which indirectly bolster the demand for batteries. In addition, import duties on lithium-ion battery components have been reduced or structured to encourage local assembly and manufacturing.

The government is also actively promoting battery recycling and second-life applications, recognizing the need for sustainability in energy storage. By setting guidelines for responsible battery disposal and reuse, India is aiming to build a circular economy around battery usage, which helps stabilize long-term supply and cost structures. Furthermore, state governments are stepping up with their own EV policies, offering local incentives, land for battery plants, and power subsidies for manufacturing units. These coordinated efforts at both central and state levels are creating a conducive environment for battery market expansion. Phase II launched with a budget of INR 10,000 crore (USD 1.3 billion) focusing on EV subsidies and infrastructure development.

Growth in Renewable Energy Integration

India’s rapid expansion in renewable energy generation is another major driver of its battery market. The country has committed to reaching 500 GW of non-fossil fuel-based capacity by 2030, including a significant share from solar and wind power. However, these sources are intermittent and seasonal, requiring reliable energy storage systems to maintain grid stability and ensure 24/7 power availability.

Batteries, especially large-scale storage solutions, are crucial in bridging this gap between generation and consumption. They can store excess energy generated during peak hours and release it during times of low production or high demand. This role is particularly important in solar-rich states like Rajasthan, Gujarat, and Tamil Nadu, where renewable output often exceeds immediate grid capacity.

Battery storage is also key in supporting decentralized power systems such as mini-grids and off-grid solar solutions. These are vital for rural and remote areas where grid connectivity is weak or unavailable. In such contexts, battery-backed systems enable consistent electricity supply for lighting, irrigation, and small-scale industries, enhancing quality of life and economic productivity.

Furthermore, utility-scale energy storage projects are being actively considered by public and private energy companies. Pilot projects for grid-scale battery storage are already underway, and several tenders have been issued for integrating battery systems with solar and wind farms. This creates a new and growing segment within the battery market that requires high-capacity, long-duration storage solutions.

As battery costs continue to decline due to global advancements and local manufacturing, their economic viability for renewable integration is increasing. Additionally, digital tools like AI and IoT are being used to optimize battery use and monitor performance, improving return on investment and operational efficiency. India's renewable energy capacity surpassed 200 GW by 2024, with solar energy contributing over 100 GW

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Key Market Challenges

Supply Chain Constraints and Raw Material Dependency

One of the most significant challenges in the Indian battery market is its heavy dependence on imported raw materials and components, particularly for lithium-ion batteries. India lacks sufficient domestic reserves of critical minerals such as lithium, cobalt, and nickel—essential elements for manufacturing high-performance batteries. As a result, battery manufacturers must rely on imports from countries like China, Australia, the Democratic Republic of Congo, and Chile, making the supply chain vulnerable to geopolitical tensions, trade disruptions, and price volatility.

This dependency poses strategic and economic risks. Any fluctuation in global commodity prices or supply bottlenecks can lead to increased production costs, which may be passed on to consumers or reduce the competitiveness of Indian battery products. Furthermore, delays in shipments or scarcity of raw materials can slow down battery production, affecting industries like electric vehicles, consumer electronics, and renewable energy storage that rely on timely battery availability.

Another dimension of this challenge is the limited domestic capability for refining and processing raw materials. Even when small quantities of lithium or other minerals are sourced, India lacks the infrastructure to refine them at scale. This forces manufacturers to depend on foreign supply chains not just for raw materials, but also for intermediary and finished battery components like cathodes, anodes, and battery management systems.

In response, the Indian government has launched initiatives to explore domestic reserves, promote recycling of used batteries, and establish partnerships with mineral-rich countries. While these steps are promising, building a self-sustaining supply chain will take time, investment, and technological development. In the short to medium term, supply chain constraints will remain a pressing issue.

Until India can develop a robust and secure supply chain—from mining and refining to manufacturing and recycling—its battery industry will continue to face challenges in cost control, scalability, and resilience. Long-term solutions will require a coordinated effort between the government, private sector, and international partners.

Recycling Infrastructure and Environmental Concerns

As battery usage in India accelerates—particularly lithium-ion batteries in electric vehicles and renewable energy systems—the issue of recycling and waste management becomes increasingly critical. Unfortunately, India currently lacks a comprehensive and efficient battery recycling infrastructure. Most used batteries, especially from informal sectors, are disposed of improperly or handled by unregulated entities, posing serious environmental and health risks.

Improper disposal of batteries can lead to soil and water contamination due to the leakage of toxic substances like lead, cadmium, and lithium. Moreover, exposure to these materials during unscientific recycling processes—common in informal sectors—endangers the health of workers and surrounding communities. This not only harms the environment but also undermines the sustainability goals of the battery industry.

A well-developed battery recycling ecosystem could help India recover valuable materials such as lithium, cobalt, and nickel, thereby reducing the need for raw material imports and easing supply chain constraints. However, establishing such a system involves significant technical, financial, and regulatory challenges. Current recycling technologies are capital-intensive, and few companies are equipped to handle large-scale, efficient, and safe battery recycling.

Another issue is the lack of clear regulations and enforcement mechanisms governing battery disposal. While the Battery Waste Management Rules have been updated to encourage Extended Producer Responsibility (EPR), implementation remains weak. There is little public awareness about proper disposal practices, and collection networks for used batteries are underdeveloped, particularly outside major urban areas.

To address these challenges, India must invest in advanced recycling technologies, support startups working in battery reprocessing, and enforce strict environmental standards across the battery lifecycle. Public-private partnerships could play a vital role in creating centralized recycling facilities and incentivizing collection and return systems. Education and awareness campaigns are also needed to promote responsible consumer behavior.

Key Market Trends

Shift Toward Lithium-Ion and Advanced Battery Chemistries

The Indian battery market is witnessing a clear shift from traditional lead-acid batteries to lithium-ion (Li-ion) and other advanced chemistries. This transition is being driven by the need for lighter, more efficient, and longer-lasting energy storage solutions, particularly in electric vehicles (EVs), consumer electronics, and renewable energy applications.

Lithium-ion batteries offer several advantages over lead-acid counterparts, including higher energy density, faster charging, better efficiency, and a longer lifespan. As these benefits become more widely recognized across industries, demand for Li-ion batteries is surging. Two-wheelers, three-wheelers, and increasingly, four-wheel EVs are now being powered almost exclusively by lithium-based batteries.

Another emerging trend is the exploration of alternative chemistries like lithium iron phosphate (LFP), nickel manganese cobalt (NMC), and even sodium-ion batteries. LFP is gaining traction due to its superior thermal stability and safety, making it ideal for India’s hot climate and budget-conscious market. NMC, known for high energy density, is being adopted for premium vehicles and grid storage.

At the research and development level, companies and institutions are actively working on solid-state batteries and other next-generation technologies that could offer safer, faster, and more sustainable storage options. These advancements may reduce reliance on rare earth metals and improve recyclability.

The government’s push for indigenous manufacturing and the PLI scheme is further fueling investments in advanced battery technologies. As costs continue to decline due to scale and innovation, lithium-ion and alternative chemistries are becoming more accessible for a broader range of applications.

Growth of Battery Manufacturing and Gigafactory Investments

India is rapidly becoming a hub for battery manufacturing, with a growing number of companies investing in large-scale production facilities—commonly referred to as gigafactories. These investments are a direct response to increasing domestic demand, policy incentives, and a strategic push to reduce dependency on imports.

The Production-Linked Incentive (PLI) scheme for Advanced Chemistry Cell (ACC) manufacturing has been a game-changer. Under this initiative, multiple firms have committed to building gigafactories capable of producing several gigawatt-hours (GWh) of battery capacity annually. These facilities are not only targeting electric vehicle batteries but also energy storage systems and industrial power backups.

The localization of battery manufacturing brings several benefits. It shortens supply chains, reduces costs, ensures quicker time-to-market, and encourages the development of ancillary industries such as cell packaging, battery management systems, and recycling units. Moreover, it creates employment and positions India as a competitive player in the global battery value chain.

Strategic collaborations between Indian firms and international battery technology companies are also on the rise. These joint ventures are enabling knowledge transfer, technology access, and faster commercialization of new chemistries and formats.

State governments are playing a key role by offering land, tax incentives, and infrastructure support to attract battery manufacturers. States like Tamil Nadu, Gujarat, and Maharashtra are emerging as leading destinations for these mega projects due to their industrial base and logistics networks.

In the coming years, India’s battery manufacturing capacity is expected to rise significantly, contributing not only to domestic demand but also to export potential. As the ecosystem matures, cost efficiency and innovation will drive further competitiveness.

Segmental Insights

Type Insights

The Lead Acid held the largest market share in 2025. Lead-acid batteries continue to dominate the Indian battery market due to a combination of cost-effectiveness, established infrastructure, and broad applicability across key sectors. Their affordability makes them highly attractive in a price-sensitive market like India, where initial cost often outweighs advanced performance, particularly in rural and semi-urban areas. Compared to newer technologies like lithium-ion, lead-acid batteries are significantly cheaper both in terms of manufacturing and end-user pricing, making them the default choice for applications such as automotive starter batteries, inverters, uninterruptible power supply (UPS) systems, and backup power for telecom towers.

India has a well-developed supply chain and manufacturing base for lead-acid batteries, with numerous local players and a mature recycling ecosystem. This long-standing industry presence ensures easy availability, robust service networks, and familiarity among consumers and technicians. Additionally, the recycling and refurbishment of lead-acid batteries are widely practiced, contributing to the circular economy and reducing environmental burden when managed properly.

In terms of performance, lead-acid batteries are proven, reliable, and capable of operating in diverse Indian climatic conditions. Their tolerance to deep discharges and rough handling makes them suitable for utility and off-grid power applications where maintenance and technical support may be limited.

While lithium-ion technology is gaining traction in electric mobility and renewable energy storage due to its higher energy density and longer cycle life, the infrastructural and cost advantages of lead-acid continue to outweigh its limitations in many mainstream applications. Government subsidies and incentives are still evolving to support large-scale lithium-ion adoption, but for now, lead-acid remains the dominant force due to its affordability, availability, and adaptability.

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Regional Insights

South India held the largest market share in 2025. South India holds a dominant position in the Indian battery market due to a combination of strategic advantages spanning industrial infrastructure, skilled workforce, policy support, and strong demand across multiple sectors.

South India, particularly states like Tamil Nadu, Karnataka, Andhra Pradesh, and Telangana, has developed a robust manufacturing ecosystem. These states host numerous battery manufacturing plants, component suppliers, and ancillary industries, benefiting from well-established industrial corridors and ports that facilitate raw material import and product export. The availability of advanced infrastructure and logistics networks reduces operational costs and improves supply chain efficiency, making the region attractive for battery manufacturers.

South India boasts a skilled and technically proficient workforce, supported by premier engineering institutions and technical training centers. This talent pool enables manufacturers to adopt cutting-edge technologies and innovate in battery chemistry, design, and assembly, thereby enhancing product quality and competitiveness. The presence of research institutions collaborating with industry players further accelerates technological advancements.

Government policies in South India have also played a critical role. Several states offer favorable investment climates, including incentives like tax breaks, subsidies, and simplified regulatory frameworks specifically targeted at the battery and electric vehicle sectors. Tamil Nadu, for instance, has emerged as a hub for electric vehicle and battery manufacturing due to proactive policy support and dedicated EV industrial parks. Moreover, the demand for batteries in South India is relatively high due to its rapid urbanization, growing adoption of electric vehicles, and expansion of renewable energy projects. The region’s favorable climate for solar energy generation fuels the need for energy storage solutions, driving battery consumption. Additionally, South India’s significant automotive and electronics industries further stimulate the market.

Recent Developments

• On 12^th May 2025, Breathe has successfully raised USD21 million in funding to accelerate the development of its innovative battery software toolchain products. These new tools are designed to enhance battery management, improve performance, and extend battery life across various applications. With this fresh capital infusion, Breathe aims to expand its product offerings and scale operations to meet growing market demand. The company’s advancements in battery software are poised to play a critical role in optimizing energy storage solutions globally.
• In April 2025, Toshiba has launched a new SCiB™ battery module featuring double the heat dissipation performance, specifically designed for electric vehicles, including EV buses, electric ships, and stationary energy storage applications. This enhanced module improves safety and reliability by efficiently managing heat during high-demand operations. With advanced thermal management, the SCiB™ module supports longer battery life and better performance, making it ideal for heavy-duty and stationary power needs in the growing clean energy and electric mobility sectors.

Key Market Players

• Panasonic Corporation
• LG Energy Solution Ltd.
• Samsung SDI Co., Ltd.
• BYD Company Limited
• Tesla, Inc.
• SK Innovation Co., Ltd.
• GS Yuasa Corporation
• Envision AESC Group Ltd.

Report Scope:

In this report, the India Battery Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• India Battery Market, By Type:

o   Lead Acid

o   Lithium Ion

o   Nickel Metal Hydride

o   Others

• India Battery Market, By Application:

o   Residential

o   Industrial

o   Commercial

• India Battery Market, By Region:

o   South India

o   North India

o   West India

o   East India

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the India Battery Market.

Available Customizations:

India Battery Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).