The Growth of EV Battery Manufacturing in India: 2024 and Beyond

Electric Vehicles are all the hype and prized possessions today for anyone. Did you know they use Lithium-Ion batteries? Lithium-ion Batteries, the same ones that power EVs today, have been used to power mobile phones and laptops for some time now, for more than 30 years at least.

And electric cars have been around for some time too, but it was only in 2008, with advancements in battery technology, that it became feasible to use Lithium-Ion batteries in EVs.

And the first EV in production to use Lithium-Ion batteries was the Tesla Roadster in 2008. And it could travel more than 244 miles on a single charge. This is something that Petrol engine cars still can’t come up to speed with (pun intended)!

Challenges for the Lithium Ion EV Battery

But Lithium-Ion batteries are not without their disadvantages. Environmental conditions and temperature can affect Lithium-Ion batteries detrimentally and cause them to burn in a fire that is difficult to put out.

They need to be kept at temperatures below 40 degree Celsius for optimum functioning. Above 40 to 50 degrees Celsius, the components deteriorate, and damage can occur to the battery. Even if it does not burn, the EV battery could still go to battery heaven and never come back!

Also, below a temperature of 20 degree Celsius, as cold packs a Stone-Cold Steve Austin punch, it can rapidly lose its range! Lead acid batteries never had such disadvantages, but they do not hold the same charge and are very big and impossible to fit into an EV.

Yet the best we have for EVs is the Lithium-Ion battery

We have reached this stage after a lot of research. Li-Ion batteries are the only way forward for EVs unless we go the Aluminum way, which has its own peculiar set of disadvantages, which makes Li-Ion the champ in the EV race (pun intended)!

And what better time than now for India to enter the EV market? With the likes of Tesla joining hands with Reliance to open a manufacturing facility in India, and the spread of vital technical knowledge, The EV battery market as is the EV market is poised for further growth in India. And India is getting into the act!

How Regulations in India Will Help the EV and EV Battery Markets

The modifications that the new regulatory standards mandate are:

1. Addition of temperature sensors to send alerts and prevent thermal incidents
2. Incorporation of safety checks for battery levels
3. Improved insulation and ingress protection
4. Provision of adequate spacing between the cells
5. Propagation test to ensure the thermal gateway in one battery does not spread to another
6. Smarter battery management system

This will lead to safer, more efficient, and longer-lasting EV batteries in EV vehicles, in turn leading to an increase in the demand for EV vehicles across India. And as the demand for EV vehicles increases, the demand for EV batteries and battery charging stations will also increase. Now let us see what India is doing on the manufacturing front to boost the EV battery market.?

How India is Increasing its Production of Lithium-Ion Batteries

India is ramping up its production of lithium-ion batteries through strategic initiatives and policies. The Faster Adoption and Manufacturing of Electric Vehicles (FAME) program, extended until March 2024, stands as a pivotal initiative in this regard.

Furthermore, the government is actively promoting domestic battery manufacturing and aiming to curtail reliance on imports through initiatives like the Phased Manufacturing Program (PMP).

Moreover, the discovery of lithium reserves within India, notably in regions like Jammu and Kashmir and Degana, Rajasthan, holds significant promise for bolstering domestic production and diminishing dependency on imports.

Companies in the EV Battery Race

The lithium-ion battery industry in India is thriving, with several key players leading the charge. Companies like Servotech Power Systems, Amara Raja Batteries, Exide Industries, and CLN - Energy are at the forefront, manufacturing lithium-ion batteries for diverse applications ranging from electric vehicles to solar power plants and home backup systems.

Renowned for their commitment to quality and innovation, these companies leverage cutting-edge technologies and superior raw materials to deliver reliable and durable products to customers.

Expanding their foothold in the market, Tata AutoComp Systems, Exide Industries, and Amara Raja Batteries are also making significant strides. Tata AutoComp Systems and Suzuki are poised to establish India as a manufacturing hub for lithium-ion batteries, catering to both domestic and export demand.

Meanwhile, partnerships with research institutes underscore Exide Industries' and Amara Raja Batteries' dedication to advancing LiB technologies, highlighting their focus on innovation and manufacturing excellence.

The Indian lithium-ion battery market is on a growth trajectory, fueled by the increasing adoption of renewable energy sources and the burgeoning electric vehicle revolution. As technology evolves and demand surges, the market is poised to transform India's energy landscape, with a strong emphasis on domestic manufacturing to enhance self-reliance and reduce costs.

This sector holds immense potential for ushering in a greener, more sustainable future, making it imperative for investors, industry stakeholders, and those interested in India's energy transition to stay abreast of developments in the lithium-ion battery industry.

The Future of the EV Battery Market in India

Lithium-Ion EV batteries are the mainstay of the EV industry. If it has four wheels and runs on electricity, Lithium-Ion batteries are the only way to put it in motion. With the regulatory atmosphere around EV batteries guaranteeing safety and a surge in demand for EVs and the discovery of lithium reserves in many places in India, the manufacturing for EVs may move to India.

Though the onus of ensuring that it is environment-friendly lies with us, the need for foreign investment and skill and knowledge sharing means that countries and multinational companies must come together.

Tesla and Reliance have taken steps to set up a manufacturing plant for EVs. The next thing to do is to take it forward with co-operation from the respective state governments and the center. Is this the beginning of an EV revolution in India and will EV battery market growth take center-stage? Only time, a little patience, some prudence and a lot of skill will tell all!