India's Li-ion Battery Demand Projected to Reach 115 GWh by 2030, Says ICEA

India’s lithium-ion battery (LiB) demand is expected to touch 115 gigawatt-hours (GWh) by 2030. The increase is led by the electric vehicle (EV) sector, along with demand from stationary energy storage systems and consumer electronics. 

Reports suggest that between 2025 and 2030, LiB demand from EVs is projected to grow at a CAGR of 48%, followed by 14% from storage and 3% from electronics.

Manufacturing Targets 

To meet this demand, India’s domestic cell manufacturing capacity is estimated to reach 220 GWh by 2030. The expansion is supported by the government’s production-linked incentive (PLI) scheme for advanced battery storage. Companies such as Ola Electric, Reliance New Energy Solar, and Rajesh Exports have received PLI allocations for a combined 40 GWh.

Despite growing domestic capacity, India continues to depend on imports for key raw materials like lithium, cobalt, nickel, and manganese. The estimated requirement for these materials is around 250 kilotonnes by 2030. This translates into a projected import exposure of over $5 billion.

Recycling Remains Minimal

Recycling of lithium-ion batteries in India remains limited, with only 1% of end-of-life batteries currently processed. Existing recycling operations are running at 30-35% capacity. By 2030, the recycling requirement is expected to rise to 200-250 kilotonnes, but the current recycled supply stands at just 1-3 kilotonnes.

Challenges in Material Recovery

Graphite, used in battery anodes, presents a challenge due to low recovery quality in recycling processes. As a result, producers often use other materials like aluminium and plastic to meet recovery targets, which don’t contribute to meeting future battery-grade material needs.

The Ministry of Electronics and IT (MeitY) is working to formalise the recycling sector. C-MET Hyderabad is currently collaborating with over 25 companies on lithium-ion battery recycling technologies and solutions.

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Conclusion

With demand expected to grow sharply, the gap between usage and recycling capacity in India remains wide. Addressing raw material dependency and scaling recycling will be key in the coming years.

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