Building A Resilient Supply Chain: How EV Startups Can Boost Domestic Li-ion Cell Manufacturing 

Building A Resilient Supply Chain: How EV Startups Can Boost Domestic Li-ion Cell Manufacturing 

SUMMARY

Today, 70% of India’s cell import share relies on neighbouring countries, posing a high risk as geopolitical tensions can impact business growth, making localisation even more necessary

India aims to localise its supply chain for Li-ion cells as it anticipates significant growth in the Li-ion battery market

However, challenges such as a lack of R&D know-how, a talent deficit, and the need for a resilient supply chain pose obstacles to domestic cell manufacturing capabilities

Li-ion cells are powering the world’s transition to EVs, and all countries, including India, are competing fiercely to reap maximum benefits from this transition by localising the supply chain. Today, 70% of India’s cell import share relies on neighbouring countries, posing a high risk as geopolitical tensions can impact business growth, making localisation even more necessary.

The Indian Li-ion battery market is anticipated to grow from 4 GWh in 2022 to 120 GWh by 2030. To keep up with demand growing at a 53% CAGR (from 2022 to 2030), cell manufacturers have to innovate and scale up at breakneck speeds. While talks on localisation have paved the way in the past year through the government-led PLI scheme and potential JV announcements, it is pertinent to look at the challenges holding back domestic cell manufacturing capabilities.

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