India Accelerates New Energy Push, Becomes Top Destination for Chinese Lithium Batteries

From January to April 2024, India became China's top export destination for lithium batteries, receiving 347 million units—up 33.9% year-on-year—and accounting for 21.8% of China’s total lithium battery exports. In May 2024, EVE Energy signed an order with an Indian energy company for 8 GWh of energy storage batteries. The two parties have a potential collaboration scale of up to 60 GWh over the next five years, supplying 628 Ah high-capacity energy storage batteries tailored to India’s demand for efficient energy storage solutions. Additionally, Reliance Industries is negotiating battery component procurement deals with Chinese firms such as CATL, while Adani Group is also seeking technical partnerships with Chinese battery manufacturers. Several Chinese battery companies have already entered the Indian market. India’s electric vehicle (EV) market is growing rapidly, with sales projected to reach 2.3 million units in 2025, led primarily by electric two-wheelers. However, challenges such as inadequate charging infrastructure and an underdeveloped supply chain continue to constrain industry growth. The Indian government aims for EVs to account for 30% of total vehicle sales by 2030, with industry forecasts suggesting the market could reach $150 billion by then. The energy storage sector is also expanding, with 92 GWh of battery energy storage system (BESS) projects currently in development. India’s battery market size is expected to grow from $8.4 billion in 2025 to $18.3 billion by 2030. To boost domestic lithium battery manufacturing, India launched an incentive program in 2022. However, as of the end of 2025, only about 1.4 GWh of actual production capacity has been built, and incentive subsidies have yet to be disbursed. Despite these hurdles, Indian companies and investors are accelerating their investments in the battery sector, with several major projects already underway. Due to weak industrial foundations and insufficient technological expertise, India remains unlikely to achieve self-reliance in battery manufacturing in the near term and will continue to depend on external supply.