India’s lithium-ion battery (LiB) market is on the cusp of a dramatic transformation, with demand projected to surge to 115 gigawatt-hours (GWh) by 2030. This growth is primarily fueled by the rapid adoption of electric vehicles (EVs), expansion in stationary energy storage, and the proliferation of consumer electronics. However, the country’s lagging battery recycling ecosystem poses a significant threat to both environmental sustainability and the security of critical raw materials.
The EV segment is expected to drive LiB demand at an astonishing 48% compound annual growth rate (CAGR) between 2025 and 2030, outpacing all other sectors. As India integrates more renewable energy into its grid, stationary storage demand is set to grow at a 14% CAGR.This sector will see a modest 3% CAGR, but remains a steady contributor to overall demand.
India’s push towards net-zero emissions, backed by government initiatives such as the Critical Minerals Mission and production-linked incentives (PLI) for advanced battery storage, has catalyzed investments in domestic manufacturing. By 2030, India’s cell manufacturing capacity is expected to reach 220 GWh, with major players like Ola Electric, Reliance New Energy Solar, and Rajesh Exports securing PLI allocations for a combined 40 GWh.
Despite the ambitious manufacturing targets, India faces a critical challenge: battery recycling. Currently, only 1% of end-of-life lithium-ion batteries are recycled into usable materials, with existing recycling plants operating at just 30–35% of their capacity. This is far below the projected requirement of 200–250 kilotonnes of recycled material by 2030, compared to the current 1–3 kilotonnes being processed.
India lacks domestic reserves of lithium, cobalt, nickel, and manganese, making it heavily reliant on imports. The cumulative requirement for these materials is expected to exceed 250 kilotonnes by 2030, translating to an import bill of over $5 billion. Improper disposal and informal recycling practices pose serious environmental hazards, including soil and water contamination and increased emissions.
India’s lithium-ion battery market is poised for exponential growth, but the country must urgently address its recycling lag to ensure a sustainable, secure, and circular battery economy. Bridging this gap will be crucial for meeting clean energy goals and cementing India’s position as a global leader in the energy transition.