India Requires $10 Billion Investment To Meet Domestic Li-Ion Battery Demand By 2030: Arthur D Little Study

In a recent report published by Arthur D Little titled “e-Mobility: Cell Manufacturing in India” the consultancy firm highlighted that India would require substantial investments to meet local EV battery demand by 2030. The report stated that India would require an investment of $ 10 billion into EV battery manufacturing and raw material refining industries if it wanted to meet domestic demand for Li-ion batteries by 2030.

The report stated that current India met 70% of its Li-ion battery needs through imports from China. The country current demand for Li-ion batteries stood at 3 GWh which is estimated to grow to 70 GWh by 2030.

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Barnik Chitran Maitra, Managing Partner, Arthur D Little, India, says “To accelerate India electric mobility growth, the government and the industry ecosystem must collaborate, to nurture a self-reliant, local EV value chain, with established battery manufacturers, OEMs, and start-ups, investing in continuous R&D, partnerships, and global alliances to create a strong supply chain. This, along with demand from customers, will turn India into a global EV powerhouse.”

India currently meets 70% of its demand for Li-Ion cells via imports

The report also cited some of the shortcomings of the current Indian EV industry. It stated that the country had an over-reliance on imports, limited local manufacturing and finite raw materials and raw material processing facilities.

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The report called on the government to implement new policies for the localisation of battery supply chains and provide improved access to raw materials. The report also said that the recently introduced PLI scheme for local battery manufacturing plans to jointly invest in lithium mines in Australia and increased customs duty on the import of Li-ion cells were all steps in the right direction

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while citing that manufacturers needed to make heavy investments into research and development for battery technology such as safety and being economical and able to be manufactured in a large scale.