New Delhi: According to a reports, the India lithium-ion battery market was valued at USD 1.66 billion in 2020, and it is projected to grow to USD 4.85 billion by 2027, with a CAGR of 17.23% during the forecast period of 2022-2027. The COVID-19 pandemic had an adverse effect on the raw materials, such as lead, which experienced a significant drop in demand, impacting the manufacturers of lithium-ion batteries in India.
Despite the impact of the pandemic, the electric vehicle (EV) sector in India is expected to continue growing at the same pace. ChargeUp’s Varun Goenka believes that India is well-positioned to become the third-largest EV market within the next four years.
The International Trade Centre has reported that the import value of lithium-ion accumulators decreased from USD 1.29 billion in 2019 to USD 1.05 billion in 2020. The decline in prices of lithium-ion batteries and the emergence of new markets, such as electric vehicles and energy storage systems for both commercial and residential applications, is expected to drive the growth of the lithium-ion battery market in India.
However, the lack of significant raw material reserves required for manufacturing lithium-ion batteries is expected to be a major challenge for local production and the overall market in the country. The development of indigenous sources of raw materials would help the Indian market in the long run.