Lithium-ion battery demand in India to grow to 127 gigawatt hour by FY30

The lithium-ion artillery request successful India is acceptable to turn exponentially to 54 gigawatt hr (GWh) by FY27 and 127 GWh by FY30, arsenic the state sets an ambitious people to conscionable 50 per cent of its superior vigor request from renewable vigor by 2030.

Currently, home lithium-ion artillery retention request of 15 GWh is being astir wholly met done imports of lithium-ion cells and batteries.

India imports astir its full request of Li-ion batteries. However, CareEdge Ratings expects India's import dependency to diminution to 20 per cent by FY27, contempt important maturation successful request owed to large-scale integrated capacities being built for Li-ion artillery storage.

The important maturation successful request is chiefly driven by expected summation successful EV penetration and decarbonisation of energy grids, supported by ambitious authorities targets and policies/incentives from some cardinal arsenic good arsenic authorities governments, the study mentioned.

The authorities has taken initiatives connected respective demand-side measures, specified arsenic Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme, Viability Gap Funding (VGF) strategy for Battery Energy Storage System (BESS), helping to bring down outgo of EV and BESS, thereby stimulating demand.

The Centre has acceptable the people of achieving 30 per cent EV penetration by 2030 (as a per cent of yearly sales).

India has already allocated 40 GWh of integrated artillery capacities nether the PLI scheme, with the remaining 10 GWh expected to beryllium awarded shortly.

Additionally, existing accepted artillery manufacturers and fewer different companies successful India are expected to acceptable up artillery capacities extracurricular of the PLI scheme.

Hardik Shah, Director astatine CareEdge Ratings, said that the request for lithium-ion artillery retention successful India is expected to turn importantly driven predominantly by migration towards EVs and renewable vigor retention requirements.

Consequently, India's dependence connected imports is expected to diminution sharply to 20 per cent by FY27 from near-full dependence presently, owed to giga-size integrated artillery capacities coming onstream successful India.

“Furthermore, the comparative cost-competitiveness of Indian manufacturers, successful the discourse of capableness summation and pricing argumentation of ample planetary integrated players particularly Chinese manufacturers, volition beryllium a cardinal origin to monitor,” helium added.