# Indian Electric Vehicle Battery Manufacturing Market

> Indian Electric Vehicle Battery Manufacturing Market Research Report Information By Battery Type (Lithium-Ion Battery, Nickel-Metal Hydride Battery, Lead-Acid Battery and Others), By Propulsion Type (Battery Electric Vehicles, Plug-in Hybrid Electric Vehicles and Hybrid Electric Vehicles), By Vehicle Type (Passenger Car, Commercial Vehicles and Two-Wheeler) – and India Market Forecast Till 2035

- **Forecast Period:** 2025 - 2035
- **CAGR:** 5.2%
- **2024:** $ 8.12 Billion
- **2025:** $ 8.59 Billion
- **2035:** $ 14.18 Billion
- **Key Players:** Tata Chemicals (IN), Amara Raja Batteries (IN), Exide Industries (IN), Ola Electric (IN), Ather Energy (IN), Luminous Power Technologies (IN), Mahindra Electric Mobility (IN), Hero Electric (IN), BYD India (CN), LG Energy Solution (KR)

**Report ID:** MRFR/AT/19959-HCR · **Pages:** 128 · **Author:** Shubham Munde & Sejal Akre · **Last Updated:** April 06, 2026

**URL:** https://www.marketresearchfuture.com/reports/indian-electric-vehicle-battery-manufacturing-market-21558

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## Market Summary

## **Indian Electric Vehicle Battery Manufacturing Market Overview**

Indian Electric Vehicle Battery Manufacturing Market Size was valued at USD 17.2 Billion in 2022. The Indian Electric Vehicle Battery Manufacturing market industry is projected to grow from USD 19.1 Billion in 2023 to USD 44.0 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 11.00% during the forecast period (2024 - 2032). Increasing options for EVs due to environmental concerns, fuel cost savings, and government incentives are the main market drivers anticipated to propel the Electric Vehicle Battery Manufacturing market in India.

Source: Secondary Research, Primary Research, _Market Research Future_ Database and Analyst Review

## **Indian Electric Vehicle Battery Manufacturing Market Trends**

The rising demand for electric vehicles (EVs) in India is a significant driver propelling the growth of the Indian Electric Vehicle Battery Manufacturing Market CAGR. As consumers increasingly opt for EVs due to environmental concerns, fuel cost savings, and government incentives, there is a corresponding surge in the demand for electric vehicle batteries. These batteries are a critical component of EVs, and their manufacturing forms a substantial portion of the EV value chain. To meet this escalating demand, battery manufacturers are ramping up production capacities and investing in research and development to improve battery technology, energy density, and charging capabilities.

This surge in demand for electric vehicles is thus directly stimulating the expansion and development of the electric vehicle battery manufacturing industry in India.

Government initiatives and policies play a pivotal role in driving the Indian Electric Vehicle Battery Manufacturing Market. India has introduced various schemes and incentives to promote electric mobility and domestic battery manufacturing. The Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme provides subsidies and incentives for the adoption of electric vehicles and supports the development of charging infrastructure.

Additionally, the National Electric Mobility Mission Plan (NEMMP) aims to accelerate the adoption of electric vehicles and promote indigenous manufacturing of electric vehicle components, including batteries. These initiatives create a favorable regulatory environment, incentivize investment in battery manufacturing facilities, and encourage collaboration between government agencies, industry stakeholders, and research institutions. Consequently, government support acts as a catalyst for the growth and expansion of the Indian Electric Vehicle Battery Manufacturing Market. Thus, driving the Indian Electric Vehicle Battery Manufacturing market revenue.

## **Indian Electric Vehicle Battery Manufacturing Market Segment Insights:**

### **Indian Electric Vehicle Battery Manufacturing Battery Type Insights**

The Indian Electric Vehicle Battery Manufacturing market segmentation, based on battery type, includes Lithium-Ion Battery, Nickel-Metal Hydride Battery, Lead-Acid batteries, and Others. The lithium-ion battery segment dominated the market mostly. Lithium-ion batteries have secured the largest market share in the Indian Electric Vehicle Battery Manufacturing Market due to several key factors.

These batteries are widely used because of their high energy density, longer lifespan, and lighter weight compared to other battery chemistries. Additionally, strategic initiatives by the Indian government, such as the FAME II scheme and the Production-Linked Incentive (PLI) Scheme for Advanced Chemistry Cell (ACC) battery storage, have catalyzed demand for lithium-ion batteries.

Nickel-metal hydride (NiMH) batteries are experiencing growth in the Indian Electric Vehicle Battery Manufacturing Market due to their established presence in hybrid electric vehicles (HEVs) and potential applications in certain types of electric vehicles. While lithium-ion batteries dominate the market, NiMH batteries are favored in specific EV segments due to their lower cost and proven reliability. As the demand for HEVs and niche electric vehicle models increases, NiMH batteries are witnessing a higher compound annual growth rate (CAGR) in the Indian market.

### **Indian Electric Vehicle Battery Manufacturing Propulsion Type Insights**

The Indian Electric Vehicle Battery Manufacturing market segmentation, based on propulsion type, includes Battery Electric Vehicles, Plug-in Hybrid Electric Vehicles and Hybrid Electric Vehicles. The battery electric vehicles category generated the most income. [Battery electric vehicles](../../../reports/electric-vehicles-battery-market-4810) (BEVs) have captured the largest market share in the Indian Electric Vehicle Battery Manufacturing Market due to their zero-emission propulsion system and increasing adoption by consumers and fleet operators.

BEVs rely solely on electric batteries for propulsion, eliminating the need for internal combustion engines. As India moves towards cleaner and sustainable transportation solutions, the demand for BEVs has surged, leading to a corresponding increase in the country's production and deployment of electric vehicle batteries.

Plug-in hybrid electric vehicles (PHEVs) are experiencing the highest compound annual growth rate (CAGR) in the Indian Electric Vehicle Battery Manufacturing Market due to their versatility and ability to offer both electric and internal combustion engine propulsion. PHEVs combine the benefits of electric and conventional vehicles, providing extended driving range and reduced emissions. As consumers seek vehicles with greater flexibility and reduced environmental impact, the demand for PHEVs is increasing, driving the growth of battery manufacturing specifically tailored for these vehicles in India.

### **Indian Electric Vehicle Battery Manufacturing Vehicle Type Insights**

The Indian Electric Vehicle Battery Manufacturing market segmentation, based on vehicle type, includes Passenger car, Commercial Vehicles and Two-Wheeler. Passenger cars have captured the largest market share in the Indian Electric Vehicle Battery Manufacturing Market due to their widespread adoption among consumers. As India strives to address environmental concerns and reduce carbon emissions, there has been a significant push towards electrifying passenger vehicles. With government incentives, growing consumer awareness, and advancements in technology, electric passenger cars have become increasingly popular, driving the demand for electric vehicle batteries tailored for this vehicle segment in the Indian market.

Commercial vehicles are experiencing the highest compound annual growth rate (CAGR) in the Indian Electric Vehicle Battery Manufacturing Market due to several factors. Government regulations aimed at reducing emissions from commercial fleets, coupled with the potential for significant cost savings from transitioning to [electric vehicles](../../../reports/electric-vehicles-market-1793), are driving the adoption of electric commercial vehicles.

Additionally, improvements in battery technology and charging infrastructure are making electric commercial vehicles more viable for fleet operators, leading to the rapid growth of this segment in the Indian market.

**Figure 1: Indian Electric Vehicle Battery Manufacturing Market, by Vehicle Type, 2023 & 2032 (USD Billion)**

Source: Secondary Research, Primary Research, _Market Research Future_ Database and Analyst Review

### **Indian Electric Vehicle Battery Manufacturing Country Insights**

India's Electric Vehicle Battery Manufacturing Market is witnessing robust growth driven by increasing government initiatives, rising environmental awareness, and growing consumer demand for electric vehicles (EVs). Government schemes such as FAME (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) and NEMMP (National Electric Mobility Mission Plan) incentivize EV adoption and domestic battery manufacturing. Lithium-ion batteries dominate the market due to their superior performance and suitability for EVs. Passenger cars constitute the largest market share, but commercial vehicles are experiencing the highest growth rate.

Overall, India's electric vehicle battery manufacturing sector is poised for significant expansion, supported by favorable government policies and the country's commitment to sustainable transportation solutions.

## **Indian Electric Vehicle Battery Manufacturing Key Market Players & Competitive Insights**

Leading players are focused on expanding production capacities, enhancing battery technology, and forming strategic partnerships. Companies like Exide Industries, Amara Raja Batteries, and Tata Chemicals are investing in research and other market developments to improve battery performance and reduce costs. Additionally, collaborations between battery manufacturers and electric vehicle OEMs are becoming increasingly common to ensure seamless integration of batteries into vehicles. These efforts aim to capitalize on the growing demand for electric vehicles and establish a strong foothold in India's rapidly evolving electric vehicle battery market.

Major players in the Indian Electric Vehicle Battery Manufacturing market are attempting to increase market demand by investing in research and development operations includes Exide Industries Limited, Amara Raja Batteries Limited, Tata Chemicals Limited, HBL Power Systems Limited, Eveready Industries India Limited, Luminous Power Technologies Pvt. Ltd., Okaya Power Pvt. Ltd., Greenvision Technologies Pvt. Ltd., Coslight India Telecom Pvt. Ltd. and Ultralife Corporation.

### **Key Companies in the Indian Electric Vehicle Battery Manufacturing market include**

## Indian Electric Vehicle Battery Manufacturing Industry Developments

- **Q1 2024: Tata Group to build $1.6 billion lithium-ion cell factory in Gujarat** Tata Group announced plans to invest $1.6 billion in a new lithium-ion cell manufacturing facility in Gujarat, aiming to boost India's domestic EV battery production and reduce reliance on imports.
- **Q2 2024: Exide Industries begins construction of lithium-ion cell plant in Karnataka** Exide Industries commenced construction of its lithium-ion cell manufacturing plant in Karnataka, marking a significant step toward localizing battery cell production for electric vehicles in India.
- **Q2 2024: Ola Electric secures $300 million in funding ahead of IPO** Ola Electric raised $300 million in a new funding round to expand its EV battery manufacturing capabilities and support its upcoming initial public offering.
- **Q3 2024: Log9 Materials inaugurates India’s first commercial lithium-titanate battery plant** Log9 Materials officially opened its commercial lithium-titanate battery manufacturing facility, the first of its kind in India, to supply batteries for electric two- and three-wheelers.
- **Q3 2024: Amara Raja Energy & Mobility commissions gigafactory for lithium-ion cells in Telangana** Amara Raja Energy & Mobility commissioned its gigafactory for lithium-ion cell production in Telangana, aiming to supply advanced batteries for the Indian EV market.
- **Q4 2024: Reliance New Energy partners with Chinese firm to set up battery manufacturing unit** Reliance New Energy announced a partnership with a leading Chinese battery technology company to establish a battery manufacturing unit in India, targeting the growing EV sector.
- **Q4 2024: Mahindra signs MoU with Volkswagen for EV battery technology** Mahindra & Mahindra signed a memorandum of understanding with Volkswagen to source EV battery technology and components for its upcoming electric vehicle models.
- **Q1 2025: Tata AutoComp and Gotion High-Tech launch JV for lithium-ion battery manufacturing** Tata AutoComp Systems and China’s Gotion High-Tech launched a joint venture to manufacture lithium-ion batteries in India, focusing on supplying the domestic EV market.
- **Q1 2025: Ather Energy raises $108 million in Series E funding** Ather Energy secured $108 million in Series E funding to expand its EV battery manufacturing operations and accelerate product development.
- **Q2 2025: Ola Electric files for $700 million IPO to fund battery plant expansion** Ola Electric filed for a $700 million initial public offering, with proceeds earmarked for expanding its EV battery manufacturing capacity in India.
- **Q2 2025: Exide Energy Solutions signs supply agreement with Hyundai Motor India** Exide Energy Solutions signed a supply agreement with Hyundai Motor India to provide locally manufactured lithium-ion batteries for Hyundai’s upcoming electric vehicles.
- **Q2 2025: Suzuki Motor Gujarat to set up EV battery plant in India** Suzuki Motor Gujarat announced plans to establish an EV battery manufacturing plant in India to support the growing demand for electric vehicles in the country.

## **Indian Electric Vehicle Battery Manufacturing Market Segmentation:**

### **Indian Electric Vehicle Battery Manufacturing Battery Type Outlook**

### **Indian Electric Vehicle Battery Manufacturing Propulsion Type Outlook**

### **Indian Electric Vehicle Battery Manufacturing Vehicle Type Outlook**

## Market Drivers

### Global Supply Chain Dynamics

The dynamics of The Electric Vehicle Battery Manufacturing Industry. As the world shifts towards electric mobility, the demand for critical raw materials such as lithium, cobalt, and nickel is intensifying. India, recognizing the need for a stable supply chain, is exploring partnerships with countries rich in these resources. Additionally, the government is encouraging domestic mining and processing of these materials to reduce reliance on imports. This strategic approach not only aims to secure the supply chain but also positions India as a potential hub for battery manufacturing in the Asia-Pacific region. The interplay between The Electric Vehicle Battery Manufacturing Industry.

### Government Initiatives and Policies

The India Electric Vehicle Battery Manufacturing Market is significantly influenced by government initiatives aimed at promoting electric mobility. The Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme, for instance, has allocated substantial funds to incentivize electric vehicle (EV) adoption and battery production. The government has set ambitious targets, including achieving 30 percent electric vehicle penetration by 2030. This policy framework not only encourages domestic manufacturing but also aims to reduce dependence on imports, particularly from countries like China. Furthermore, the Production-Linked Incentive (PLI) scheme is designed to boost local battery manufacturing capabilities, potentially leading to a more robust supply chain within the India Electric Vehicle Battery Manufacturing Market.

### Investment in Renewable Energy Sources

Investment in renewable energy sources is emerging as a crucial driver for the India Electric Vehicle Battery Manufacturing Market. The Indian government has set a target of achieving 175 GW of [renewable energy](https://www.marketresearchfuture.com/reports/renewable-energy-market-1515) capacity by 2022, which has likely been surpassed, and aims for 450 GW by 2030. This shift towards renewable energy not only supports the sustainability of electric vehicles but also ensures that the electricity used for battery charging is derived from clean sources. As a result, the synergy between renewable energy and electric vehicle adoption is expected to bolster the demand for batteries, thereby stimulating growth in the India Electric Vehicle Battery Manufacturing Market. This alignment may also attract foreign investments, further enhancing local manufacturing capabilities.

### Rising Consumer Demand for Electric Vehicles

The growing consumer demand for electric vehicles is a primary driver of the India Electric Vehicle Battery Manufacturing Market. As awareness of environmental issues increases, more consumers are opting for EVs, leading to a surge in battery requirements. According to recent estimates, the demand for electric vehicles in India is projected to reach 6 million units by 2025, which will necessitate a corresponding increase in battery production capacity. This trend is further supported by the increasing availability of charging infrastructure and favorable financing options for consumers. Consequently, manufacturers are compelled to scale up production to meet this burgeoning demand, thereby enhancing the overall growth of the India Electric Vehicle Battery Manufacturing Market.

### Technological Advancements in Battery Production

Technological advancements play a pivotal role in shaping the India Electric Vehicle Battery Manufacturing Market. Innovations in battery chemistry, such as the development of lithium-sulfur and solid-state batteries, are expected to enhance energy density and reduce costs. The introduction of automated manufacturing processes is also likely to improve production efficiency and scalability. As of January 2026, several Indian companies are investing in research and development to create next-generation batteries that can compete globally. The integration of artificial intelligence and machine learning in production processes may further optimize battery performance and lifecycle management, thereby positioning India as a competitive player in the global battery manufacturing landscape.

## Future Outlook

The India Electric Vehicle Battery Manufacturing Market is poised for growth at 5.2% CAGR from 2025 to 2035, driven by increasing demand for electric vehicles, government incentives, and technological advancements.

**New opportunities:**

- Establishing local battery recycling facilities to enhance sustainability and reduce costs. Developing partnerships with automotive manufacturers for integrated battery solutions. Investing in R&D for next-generation battery technologies to improve efficiency and performance.

By 2035, the market is expected to be robust, driven by innovation and strategic partnerships.

## Segment Insights

### By Application: Electric Vehicle (Largest) vs. Energy Storage Systems (Fastest-Growing)

In the India Electric Vehicle Battery Manufacturing Market, the application segment reveals a diverse distribution of battery usage. The Electric Vehicle (EV) segment dominates the market, owing to the increasing adoption of EVs driven by government initiatives and improving infrastructure. Close behind is the Energy Storage Systems segment, which is rapidly gaining traction due to the country's push towards renewable energy integration and grid stability, marking a shift towards sustainability and efficiency. 

Analyzing growth trends, the EV segment is expected to continue its dominance as technological advancements enhance battery performance and affordability. In contrast, the Energy Storage Systems segment is recognized as the fastest-growing, fueled by the rising demand for solar energy storage solutions and corporate sustainability goals. Additionally, the Consumer Electronics and Industrial Applications segments, while significant, are comparatively smaller in market share and growth potential in this context.

Electric Vehicle (Dominant) vs. Energy Storage Systems (Emerging)

The Electric Vehicle segment stands as the dominant force in the India Electric Vehicle Battery Manufacturing Market, characterized by substantial investments in battery technology and infrastructure development. This segment benefits from government-sponsored initiatives, incentives for electric mobility, and increasing consumer adoption, leading to a robust ecosystem for electric vehicles across various sectors. In contrast, Energy Storage Systems, labeled as an emerging segment, are rapidly evolving with innovations aimed at enhancing the efficiency and capacity of energy storage solutions. This segment is gaining prominence due to its applications in renewable energy systems and the need for reliable energy supply in the face of fluctuating demand. Collectively, these segments illustrate a dynamic landscape where electric vehicles set the pace for market growth while energy storage systems carve a niche with significant potential.

### By Battery Type: Lithium-ion Battery (Largest) vs. Solid-state Battery (Fastest-Growing)

In the India Electric Vehicle Battery Manufacturing Market, the Lithium-ion battery segment holds the largest market share, primarily due to its efficiency, energy density, and relatively lower costs compared to other battery types. This segment has established itself as the most preferred choice among electric vehicle manufacturers, outpacing other alternatives such as lead-acid and nickel-metal hydride batteries. Meanwhile, the solid-state battery segment, although currently a smaller market player, is emerging with great potential due to innovative technologies that promise superior safety and higher energy capacities, making it an exciting area in the Indian market.

Lithium-ion Battery (Dominant) vs. Solid-state Battery (Emerging)

Lithium-ion batteries are the dominant force in the Indian electric vehicle battery market, favored for their high energy density, light weight, and long cycle life, which cater to the growing demand for electric vehicles. These batteries are backed by extensive research and technological advancements, enabling manufacturers to optimize performance and reduce costs. On the other hand, solid-state batteries are considered the emerging alternative, known for their improved safety, potential for higher energy capacities, and longevity. As technology matures, solid-state batteries may potentially reshape market dynamics, appealing to manufacturers aiming for innovative designs and improved performance.

### By End Use: Passenger Vehicles (Largest) vs. Two-wheelers (Fastest-Growing)

In the India Electric Vehicle Battery Manufacturing Market, the end use segment is primarily dominated by passenger vehicles, which hold the largest share. This segment benefits from the increasing consumer preference for sustainable modes of transport and government incentives promoting electric vehicles. Two-wheelers represent a rapidly growing segment, fueled by urbanization, rising fuel prices, and changing consumer preferences toward electric alternatives that provide cost-effectiveness and efficiency.

Growth trends indicate that while passenger vehicles maintain a strong position, two-wheelers are increasingly becoming attractive due to their lower price point and convenience in Indian urban environments. Additionally, rising infrastructure support, such as charging stations, and advancements in battery technologies are fostering this growth, enabling the transition to electric mobility across diverse vehicle categories.

Passenger Vehicles: Dominant vs. Two-wheelers: Emerging

The passenger vehicle segment primarily drives the electric vehicle battery market, characterized by steady growth due to enhanced consumer demand for eco-friendly transportation solutions paired with supportive government policies. The segment incorporates a range of models from compact cars to luxury sedans, each focusing on leveraging advanced battery technologies for longer ranges and efficient performance. Conversely, the two-wheeler segment is emerging rapidly, thanks to its affordability and ease of use, particularly in densely populated cities. Two-wheelers cater to a wide demographic, including daily commuters and younger consumers, promoting electric adoption amidst increasing recognition of their contribution to reducing urban pollution. The growth in battery capacity and performance in this segment is pivotal to the ongoing expansion of electric mobility in India.

### By Chemistry: Lithium Iron Phosphate (Largest) vs. Lithium Nickel Manganese Cobalt (Fastest-Growing)

The Chemistry segment of the India Electric Vehicle Battery Manufacturing Market showcases a diverse landscape with Lithium Iron Phosphate (LFP) leading the charge. Accounting for a significant percentage of the market share, LFP is favored for its thermal stability, safety, and cost-effectiveness. Following closely is Lithium Nickel Manganese Cobalt (NMC), which is gaining traction as it combines high energy density with long life cycles, making it an attractive choice for premium electric vehicles. Other variants like Lithium Cobalt Oxide and Lithium Titanate play niche roles but constitute a smaller portion of the overall market.

Battery Chemistry: LFP (Dominant) vs. NMC (Emerging)

Lithium Iron Phosphate (LFP) currently dominates the battery chemistry landscape in India due to its affordability and safety, making it suitable for mass-market electric vehicles. Its resilience to thermal runaway and longer lifespan contribute to its appeal among manufacturers. On the other hand, Lithium Nickel Manganese Cobalt (NMC) is emerging rapidly, particularly for high-performance EVs. While NMC batteries are costlier, their superior energy density and efficiency make them preferred for those seeking advanced technology and longer ranges. As the Indian EV market matures, the competition between these chemistries will intensify, highlighting performance and cost as critical differentiators.

### By Manufacturing Process: Cell Manufacturing (Largest) vs. Recycling (Fastest-Growing)

The India Electric Vehicle Battery Manufacturing Market is witnessing a significant distribution of market share across its manufacturing processes, with Cell Manufacturing taking the lead as the largest segment. This segment plays a critical role in the overall battery production chain, focusing on the creation of battery cells, which are the foundational components of EV batteries. Module Assembly follows, contributing substantially, while Pack Assembly and Recycling are gaining traction as essential processes in the manufacturing ecosystem.

Cell Manufacturing (Dominant) vs. Recycling (Emerging)

Cell Manufacturing remains the dominant process in the India Electric Vehicle Battery Manufacturing Market, driven by advancements in technology and notable investments in production facilities. This segment is characterized by its extensive R&D activities aimed at improving cell efficiency and performance. Conversely, Recycling has emerged as a critical area for growth, propelled by rising environmental concerns and regulatory pressures. The need for sustainable practices has led to increased focus on recycling technologies, which can reclaim valuable materials from spent batteries, resulting in economic and ecological benefits. As the market evolves, both segments signify essential components of a balanced and responsible manufacturing approach.

## Competitive Benchmarking

The Electric Vehicle Battery Manufacturing Market in India is currently characterized by a dynamic competitive landscape, driven by increasing demand for electric vehicles (EVs) and a strong push towards sustainable energy solutions. Major players such as Tata Chemicals (IN), Amara Raja Batteries (IN), and Ola Electric (IN) are strategically positioning themselves through innovation and regional expansion. Tata Chemicals (IN) has focused on enhancing its lithium-ion battery production capabilities, which appears to be a response to the growing need for efficient energy storage solutions. Meanwhile, Amara Raja Batteries (IN) is investing in research and development to improve battery efficiency and lifecycle, indicating a commitment to technological advancement. Ola Electric (IN) is leveraging partnerships with global technology firms to enhance its battery management systems, which may provide a competitive edge in the rapidly evolving market.
The market structure is moderately fragmented, with several players vying for market share. Key business tactics include localizing manufacturing to reduce costs and optimize supply chains. This localization strategy is particularly evident as companies seek to mitigate risks associated with global supply chain disruptions. The collective influence of these key players shapes a competitive environment where innovation and operational efficiency are paramount.
In December 2025, Tata Chemicals (IN) announced a collaboration with a leading technology firm to develop next-generation battery materials. This strategic move is likely to enhance their product offerings and position them favorably against competitors. The partnership may also facilitate access to advanced technologies, thereby accelerating the development of high-performance batteries that meet the evolving demands of the EV market.
In November 2025, Ola Electric (IN) unveiled its plans to establish a new manufacturing facility in Tamil Nadu, aimed at increasing production capacity for its electric scooters and batteries. This expansion is significant as it not only boosts local employment but also aligns with the Indian government's initiatives to promote domestic manufacturing under the "Make in India" campaign. Such a move could potentially enhance Ola's market presence and operational efficiency.
In October 2025, Amara Raja Batteries (IN) launched a new line of lithium-ion batteries specifically designed for electric two-wheelers. This product launch reflects the company's strategic focus on catering to the growing demand for electric mobility solutions. By diversifying its product portfolio, Amara Raja is likely to strengthen its competitive position in the market.
As of January 2026, current trends in the Electric Vehicle Battery Manufacturing Market indicate a strong emphasis on digitalization, sustainability, and the integration of artificial intelligence (AI) in production processes. Strategic alliances among companies are increasingly shaping the competitive landscape, fostering innovation and enhancing supply chain reliability. The shift from price-based competition to a focus on technological advancement and sustainable practices is becoming more pronounced. As the market evolves, differentiation will likely hinge on the ability to innovate and adapt to changing consumer preferences, thereby ensuring long-term competitiveness.

## Recent News & Developments

- **Q1 2024: Tata Group to build $1.6 billion lithium-ion cell factory in Gujarat** Tata Group announced plans to invest $1.6 billion in a new lithium-ion cell manufacturing facility in Gujarat, aiming to boost India's domestic EV battery production and reduce reliance on imports.
- **Q2 2024: Exide Industries begins construction of lithium-ion cell plant in Karnataka** Exide Industries commenced construction of its lithium-ion cell manufacturing plant in Karnataka, marking a significant step toward localizing battery cell production for electric vehicles in India.
- **Q2 2024: Ola Electric secures $300 million in funding ahead of IPO** Ola Electric raised $300 million in a new funding round to expand its EV battery manufacturing capabilities and support its upcoming initial public offering.
- **Q3 2024: Log9 Materials inaugurates India’s first commercial lithium-titanate battery plant** Log9 Materials officially opened its commercial lithium-titanate battery manufacturing facility, the first of its kind in India, to supply batteries for electric two- and three-wheelers.
- **Q3 2024: Amara Raja Energy & Mobility commissions gigafactory for lithium-ion cells in Telangana** Amara Raja Energy & Mobility commissioned its gigafactory for lithium-ion cell production in Telangana, aiming to supply advanced batteries for the Indian EV market.
- **Q4 2024: Reliance New Energy partners with Chinese firm to set up battery manufacturing unit** Reliance New Energy announced a partnership with a leading Chinese battery technology company to establish a battery manufacturing unit in India, targeting the growing EV sector.
- **Q4 2024: Mahindra signs MoU with Volkswagen for EV battery technology** Mahindra & Mahindra signed a memorandum of understanding with Volkswagen to source EV battery technology and components for its upcoming electric vehicle models.
- **Q1 2025: Tata AutoComp and Gotion High-Tech launch JV for lithium-ion battery manufacturing** Tata AutoComp Systems and China’s Gotion High-Tech launched a joint venture to manufacture lithium-ion batteries in India, focusing on supplying the domestic EV market.
- **Q1 2025: Ather Energy raises $108 million in Series E funding** Ather Energy secured $108 million in Series E funding to expand its EV battery manufacturing operations and accelerate product development.
- **Q2 2025: Ola Electric files for $700 million IPO to fund battery plant expansion** Ola Electric filed for a $700 million initial public offering, with proceeds earmarked for expanding its EV battery manufacturing capacity in India.
- **Q2 2025: Exide Energy Solutions signs supply agreement with Hyundai Motor India** Exide Energy Solutions signed a supply agreement with Hyundai Motor India to provide locally manufactured lithium-ion batteries for Hyundai’s upcoming electric vehicles.
- **Q2 2025: Suzuki Motor Gujarat to set up EV battery plant in India** Suzuki Motor Gujarat announced plans to establish an EV battery manufacturing plant in India to support the growing demand for electric vehicles in the country.

## Report Scope

| MARKET SIZE 2024 | 8.12(USD Billion) |
| --- | --- |
| MARKET SIZE 2025 | 8.59(USD Billion) |
| MARKET SIZE 2035 | 14.18(USD Billion) |
| COMPOUND ANNUAL GROWTH RATE (CAGR) | 5.2% (2024 - 2035) |
| REPORT COVERAGE | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| BASE YEAR | 2024 |
| Market Forecast Period | 2025 - 2035 |
| Historical Data | 2019 - 2024 |
| Market Forecast Units | USD Billion |
| Key Companies Profiled | Tata Chemicals (IN), Amara Raja Batteries (IN), Exide Industries (IN), Ola Electric (IN), Ather Energy (IN), Luminous Power Technologies (IN), Mahindra Electric Mobility (IN), Hero Electric (IN), BYD India (CN), LG Energy Solution (KR) |
| Segments Covered | Application, Battery Type, End Use, Chemistry, Manufacturing Process |
| Key Market Opportunities | Growing demand for sustainable energy storage solutions drives innovation in the India Electric Vehicle Battery Manufacturing Market. |
| Key Market Dynamics | Rising demand for electric vehicles drives competition and innovation in India's battery manufacturing sector. |
| Countries Covered | India |

## Frequently Asked Questions

**Q: What is the current valuation of the India Electric Vehicle Battery Manufacturing Market?**
A: The market valuation was 8.12 USD Billion in 2024.

**Q: What is the projected market size for the India Electric Vehicle Battery Manufacturing Market by 2035?**
A: The market is projected to reach 14.18 USD Billion by 2035.

**Q: What is the expected CAGR for the India Electric Vehicle Battery Manufacturing Market during the forecast period?**
A: The expected CAGR for the market from 2025 to 2035 is 5.2%.

**Q: Which companies are considered key players in the India Electric Vehicle Battery Manufacturing Market?**
A: Key players include Tata Chemicals, Amara Raja Batteries, Exide Industries, and Ola Electric, among others.

**Q: What are the main applications of electric vehicle batteries in India?**
A: The main applications include Electric Vehicles, Energy Storage Systems, Consumer Electronics, and Industrial Applications.

**Q: What is the market valuation for lithium-ion batteries in the India Electric Vehicle Battery Manufacturing Market?**
A: The valuation for lithium-ion batteries was 4.86 USD Billion in 2024 and is expected to reach 8.0 USD Billion by 2035.

**Q: How do passenger vehicles contribute to the India Electric Vehicle Battery Manufacturing Market?**
A: Passenger vehicles accounted for a market valuation of 3.24 USD Billion in 2024, projected to grow to 5.8 USD Billion by 2035.

**Q: What is the significance of recycling in the manufacturing process of electric vehicle batteries?**
A: Recycling is projected to grow from 1.64 USD Billion in 2024 to 2.98 USD Billion by 2035, indicating its increasing importance.

**Q: What types of batteries are primarily used in the India Electric Vehicle Battery Manufacturing Market?**
A: The primary battery types include Lithium-ion, Lead-acid, Nickel-metal Hydride, and Solid-state batteries.

**Q: What are the expected trends in battery chemistry for the India Electric Vehicle Battery Manufacturing Market?**
A: The market for Lithium Nickel Manganese Cobalt batteries is expected to grow from 2.5 USD Billion in 2024 to 4.0 USD Billion by 2035.


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