EVolving Ecosystems

India’s EV market is rapidly expanding, driven by government policies that encourage widespread adoption. In the fiscal year 2023–24, EVs accounted for 6.8 percent of vehicle sales. The PM e-Drive program has set an ambitious target of reaching 30 percent EV sales by 2030, translating to 102 million EVs on the road. Achieving this goal will require a reliable supply of advanced batteries, especially lithium-ion.

Since 2013, battery technology has significantly evolved: energy density has doubled, and costs have dropped by 80 percent, making EVs more competitive with traditional internal combustion vehicles. To sustain this momentum, building a resilient battery supply chain is essential.

The report EVolving Ecosystems: Unlocking the Potential of India’s Domestic Battery Value Chain, developed with RMI, Micelio Mobility, and NSRCEL, provides a comprehensive analysis of India’s current battery value chain. It identifies key challenges and actionable solutions to strengthen this critical ecosystem.

The battery value chain in India can be divided into three stages:

• Upstream: Raw material mining and processing
• Midstream: Cell manufacturing and assembly
• Downstream: Battery integration and end-of-life management

While initiatives like the Production Linked Incentive Scheme for Advanced Cell Chemistry (PLI-ACC) and Battery Waste Management Rules (BWMR) are helping expand cell manufacturing and encourage circularity, India still faces challenges in securing raw materials and lacks sufficient capabilities for material extraction and cathode and anode manufacturing.

This report explores how to create a sustainable and circular battery value chain through substantial investments in battery infrastructure and innovation, as well as robust collaboration among stakeholders. These are crucial steps to support India’s EV transition.