India emerges as global Li-Ion battery market leader

As the global Lithium-Ion (Li-Ion) battery market is forecast to grow from $57.4 billion in 2023 to $120.65 billion by 2028, India is set to emerge as a market leader due to significant uptake and favourable policy measures, according to Research and Markets.

According to Research and Markets’ report – titled Lithium-ion Battery Market, Size, Global Forecast 2024-2028, Industry Trends, Share, Growth, Insight, Impact of Inflation, Company Analysis – escalating consumer expenditure on electronic devices is a giant catalyst for the battery market’s value surge.

Additionally, the increasing costs of fossil fuels and gas have triggered significant adoption of electrical automobiles, propelling market enlargement.

The researcher’s predictions, they state in a release, suggest a sizeable global Li-Ion battery demand increase, skyrocketing from over 700GWh in 2022 to approximately 4.7TWh by 2030.

Notably, mobility applications like electric vehicles are set to dominate this demand, accounting for approximately 4,300GWh in 2030, reflecting the ever-expanding landscape of electric mobility.

Emergent India

According to Research and Markets, policy measures, including bans on sales of internal combustion engines (ICEs) are additional propellers.

Norway will halt sales by 2025, France by 2040 and the UK by 2050.

India targets to phase out ICE engines in 2030, while China is developing a comparable plan.

Additionally, global zero-carbon projects have turbocharged EV demand, states the researcher, driving the need for Li-Ion batteries in electric-powered vehicle power systems.

The report cites how, in India, the government aims to achieve 30% EVs by 2030. Furthermore, in July 2019, the goods and services tax (GST) on EVs was reduced from 12% to 5% and it has, in turn, also introduced an income tax exemption for prospective EV buyers.

The tech’s evolution and rising customer expectancies for extended battery existence and faster charging similarly boost the demand for global Li-Ion.

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The research also highlights projects in the country, such as FAME – an incentive scheme that encourages the adoption of electric and hybrid vehicles.

According to Customized Energy Solutions (CES), an energy advisory, software and services company, in their 2022 India Electric Vehicle Charging Infrastructure & Battery Swapping Market Overview Report, efforts taken by the Department of Heavy Industries through the FAME Scheme have resulted in a significant increase in the number of charging stations in the country.

State governments, they find, are also taking active steps to increase EV charging networks by providing attractive incentives in the form of capital subsidy and 100% reimbursement of state goods and services tax.

They add how annual sales of Li-Ion-based EVs are expected to be 17 million in 2030 under a ‘Business as usual’ scenario.

This, alongside the need for dependable energy storage solutions in the country, specifically in the renewable sectors, like sun and wind power, has also served to boost battery deployment.

India is thus rising as a worldwide manufacturing hub for these batteries, states the Research and Markets through their report, attracting massive investments.