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India Lithium-ion Battery (LiB) Market Size Worth US$ 11.13 Billion By 2027| CAGR 21.8%

As per the report “India Lithium-Ion Battery (LiB) Market – Industry Dynamics, Market Size, and Opportunity Forecast to 2027” published by Astute Analytica, the Lithium-ion battery market in India is forecast to clock CAGR of 21.8% during the period 2021-2027, with battery energy supply pegged at exceeding 96.3 GWh in 2027. A large share, more than 50%, of this supply in the market is understood to be supported by local capacity. The revenue gap in capacity and demand is expected to drop to close to 41% by 2027, recording improvement by 26% over 8 years, 2020-2027.

The highest share of demand is expected from the Consumer Electronics segment, peaking 38 GWh by 2027, one-fifth of which is alone by smartphones. Within the Electric vehicles segment, hybrid electric vehicles (HEV) are forecast to account for the largest opportunity share. Aftermarket capacity is also forecast to rise by more than 5 GWh over the period 2019-2027. With multiple players planning to set up new plants and scaling current facilities, the industry has seen a sharp rise in the number of players investing across the supply chain. Some of the wells known names include Tata group, BHEL, Samsung, Exide, and Suzuki. Considering constraints related to Lithium supply in the market, the recycling business holds tremendous opportunities and has emerged as a critical part of the entire supply chain strategy. Recycle market in India for LiB batteries is expected to reach close to 80 GWh by 2030, with companies such as Tata Chemicals and MG Motor-Umicore collaborating to capture the latent opportunities. The reason for this is knowing that almost 80% of battery components can be reused/recycled to manufacture new batteries, and thus holds immense cost-saving and sustenance opportunities for the manufacturers.

Where is the market heading?

Of different types of Li-ion batteries, more than 50% of demand is contributed by Lithium Nickel Magnesium Cobalt (LI-NMC) and Lithium Cobalt Oxide (LCO) batteries alone, while Lithium Titanate Oxide (LTO) and Lithium Ferro Phosphate (LFP) are analyzed to emerge as fastest growing battery types, recording CAGR more than 1.5 times the industry average of 24%. Most of these batteries are expected to see demand within the capacity range of 3,000-10,000 mAH. Batteries with a capacity of more than 60,000 mAH are forecast to grow at CAGR close to 30% with demand largely coming from Electric vehicles. Government push for EV adoption and support to create EV charging infrastructure has driven positive sentiments in the sector and many players are exploring options to capture different business avenues. For instance, companies such as NTPC, EESL, and REIL, have earlier this year received an in-principal nod from the government to set up 2,600 EV charging stations in the country. 

By design, more than 50% of batteries are expected to be ordered or built as cylindrical and pouch shape. On contrary, elliptical, and prismatic designs are analyzed to emerge as the fastest-growing segments, considering higher compatibility with different end-product space calibrations and thus higher suitability for applications such as electric vehicles, electronics, and other industrial and energy storage uses cases.

A large number of these activities and investments are concentrated across South, West, and North-West India, with North and West regions alone contributing close to 65% revenue share in 2020. The concentration of industrial manufacturing belts – automobiles, electronics, and solar energy, in the circle, is seen as a major driver for companies investing in these regions for new infrastructure development. Moreover, manufacturers prefer to set up Li-ion battery manufacturing plants in the South-India zone due to the presence of several ports and mines in the region. States such as Tamilnadu, Karnataka, Maharashtra, and Gujarat are the largest markets of other regions, while Maharashtra, Uttar Pradesh, Gujarat, Delhi, and Haryana are most promising for favorable outlook, and are analyzed to emerge as quickest growing markets.

What competitors are doing?

Domestic players active in the market include names such as ISRO, Amara Raja Group, BHEL, Microtech Energy Pvt. Ltd., and Tata Chemicals. Key players from the global market include names such as BYD Company, LG Chem, Samsung SDI, Bak Group, and Johnson. With the presence of numerous players in India, many initiatives have been taken by companies to maintain their position in this market. For instance:

  • In February 2020, BHEL had announced to the installation of energy storage systems (BESS) worth Rs 2.51 crore. The PSU offered 410 kilowatt-hours (kWh) of cumulative battery capacity in total cost, including six years of comprehensive warranty and maintenance
  • In August 2019, Amara Raja Batteries installed Electric Vehicle (EV) battery charging and battery swapping stations in Tirupati in collaboration with Tirupati Municipal Corporation, as part of its Smart City Program
  • In September 2019, Tata Chemicals launched a Li-ion battery recycling plant with the objective of commercial recovery of cathode active materials from spent lithium-ion cells/batteries.

Roadblocks ahead!

Despite various driving factors, the Lithium-ion battery market in India can face severe challenges. India has relied on heavy imports from other countries to fulfill its demand for lithium, the primary material to manufacture lithium-ion batteries, due to a massive surge in domestic demand. This makes the initial cost of manufacturing a Lithium-ion battery 40% more than an average battery. Importers in India are therefore more interested in importing Lithium-ion batteries rather than selling domestically manufactured Li-ion batteries. In fact, Li-ion battery import has increased more than 300% in the past 3 years. Even after aggressive initiatives by key players to ignite the domestic manufacturing of Li-ion batteries along with government participation, India has a long path to fulfill the country’s huge demand for Li-ion batteries at competitive pricing and a wide range of batteries. Thus, it calls for a multi-pronged approach, requiring initiatives and calibrated steps from different quadrants to ensure a gradual but targeted shift to a new energy regime. Not just awareness at the consumer level and favorable policies, manufacturers need to focus on securing the supply chain through technology partnerships with Lithium rich nations and simultaneously developing new technologies for recycling and higher efficiency of batteries. Reducing costs at different levels of supply would ensure batteries are affordable for the larger mass market and allow enterprises to recover costs through efficient recycling programs.

The report provides in-depth analysis for the India Lithium-Ion Battery (LiB) Market – Industry Dynamics, Market Size, and Opportunity Forecast to 2027, based on the following segmentations:

By Product Type 

  • Lithium Nickel Magnesium Cobalt (LI-NMC)
  • Lithium Ferro Phosphate (LFP)
  • Lithium Cobalt Oxide (LCO)
  • Lithium Titanate Oxide (LTO)
  • Lithium Manganese Oxide (LMO)
  • Lithium Nickel Cobalt Aluminum Oxide (NCA)

By Power Capacity

  • 0-3,000 mAH
  • 3,000-10,000 mAH
  • 10,000-60,000 mAH
  • More than 60,000 mAH

By Form/Design

  • Pouch
  • Cylindrical
  • Elliptical
  • Prismatic
  • Custom Design

By Application

  • Consumer Electronics OEMs
    • Smartphones
    • Laptops
    • UPS Systems
    • Smart Cameras
    • Smart Watches
    • Smart Glasses
    • Smart Textiles
    • Others
  • Automotive OEMs
    • Hybrid Electric Vehicles (HEVs)
    • Battery Electric Vehicles (BEVs)
    • Others (Service Stations/Dealers)
  • Energy Storage
    • Commercial
    • Industrial
    • Residential
    • Utilities
  • Industrial OEMs
    • Military
    • Industrial Equipment
    • Medical
    • Marine
    • Telecommunication
    • Mining
    • Forklifts
    • Others
  • Other OEMs
  • Aftermarket

By Region

  • North
    • Uttar Pradesh
    • Rajasthan
    • Delhi
    • Haryana
  • South
    • Tamil Nadu
    • Kerala
    • Karnataka
    • Andhra Pradesh
  • East
    • West Bengal
    • Bihar
    • Assam
  • West
    • Gujarat
    • Madhya Pradesh
    • Maharashtra

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