India's Lithium Battery Projects Delayed by Tech Constraints; Firms Shift Focus Overseas

Several Indian companies have encountered delays in building lithium-ion battery materials and cell manufacturing facilities. Reliance Industries has suspended its planned lithium battery cell production project in India, originally slated for 2026, due to China’s export controls on critical technologies. Although Altmin has completed a pilot-scale cathode materials plant in Hyderabad, it has postponed the commissioning of its large-scale facility from 2026 to 2028. Some companies, such as Epsilon Carbon, plan to export their output to South Korea, Japan, and the United States. In 2021, the Indian government launched a subsidy program offering up to ₹181 billion to support the establishment of 50 GWh of advanced battery manufacturing capacity. Currently, Indian battery makers report challenges related to material pricing, quality, and supply stability, while materials manufacturers cite insufficient subsidies and the absence of mandatory domestic procurement policies as key pressures. Additionally, sodium-ion batteries—whose raw material costs can be up to 30% lower than those of lithium iron phosphate (LFP) batteries—pose a challenge to India’s existing technological pathways.