01市场格局

       印度拥有雄心勃勃的新能源目标：计划到2030年实现500GW可再生能源装机，并将电动汽车占汽车总销量的比例提高到30%。 This directly gave rise to huge battery market demand. According to forecasts, by 2030, the size of the Indian battery market will climb from approximately 50 billion yuan in 2025 to approximately 130 billion yuan.

To achieve these goals, the Indian government adopts a "carrot and stick" policy combination: on the one hand, it provides huge financial support and tax incentives, and on the other hand, through policies such as the "Production-Linked Incentives" (PLI) program, it requires companies to increase their localization rate in order to enjoy subsidies.

These policies have significant effects. Data shows that of all batteries imported by India from 2023 to 2024, 75% will come from China, but its domestic industrial base is still weak.

02The rise of local enterprises

Local Indian companies are accelerating their deployment in the lithium battery industry chain through independent investment, technical cooperation and vertical integration.

Agratas, the battery business company of Tata Group, is rapidly building its world-class battery manufacturing plant in Sanand, Gujarat. The first phase of the project plans to have an annual production capacity of 20GWh. The project is seen as key to strengthening India's domestic advanced battery manufacturing capabilities.

Himadri chose to make a breakthrough from the battery material side. The company is building what it claims is "the first commercial lithium iron phosphate (LFP) cathode active material factory outside China" in Odisha, with a target long-term production capacity of up to 200,000 tons/year. The core of its strategy is to become an alternative supplier to "China + 1".

Amara Raja Energy and Mobility Company focuses on the acquisition and research and development of battery cell manufacturing technology. Its commercial trial production plant for lithium-ion battery cells is in the advanced stages of construction and is planned to be put into production by the end of the 2025-2026 fiscal year (i.e. before the end of March 2026). At the same time, its first-stage large-scale battery cell manufacturing facility is also under construction and is expected to provide an annual production capacity of 2GWh, with room for long-term expansion to 16GWh reserved.

Another noteworthy company is Nash Energy, which claims to be "India's first large-scale lithium iron phosphate battery manufacturer" and has built production capacity in Bangalore. The company is planning to build a gigafactory with a total production capacity of about 10GWh in phases.

03 In-depth participation of Chinese-funded enterprises

Facing the vast market, Chinese lithium battery industry chain enterprises are deeply involved in the development of the Indian market through various methods such as product exports, technology licensing and localization cooperation.

Product export and large orders

The technological and cost advantages of Chinese companies make them extremely competitive in the Indian market. In September 2025, Indian renewable energy producer ACME Solar announced an order for a 2GWh battery energy storage system from a subsidiary of China Automotive New Energy Technology Co., Ltd. This is part of the more than 5GWh of energy storage products the company purchased from Chinese manufacturers that year.

What’s even more striking is that in August 2025, China Automotive New Energy Co., Ltd. signed a memorandum of cooperation on a 5GWh energy storage system in 2026-2027 with IndiGrid, India’s largest power infrastructure investment trust. This is not only the largest single order between China and India in the field of new energy so far, but also marks the first time that a Chinese company has entered India's mainstream power grid with a "system-level + long-term service" model.

Technical cooperation and localized production

In addition to direct exports, more Chinese companies are choosing to make longer-term arrangements in the Indian market through technology licensing, equipment supply and the construction of local factories.

Honeycomb Energy signed an agreement with Indian battery manufacturer Exide Energy to assist it in building a 6GWh lithium battery factory in India.

Guoxuan Hi-Tech signed an agreement with Amara Raja to license its lithium iron phosphate battery technology and support its construction of a battery factory in India.

· Sino-Sino Aviation has established a long-term exclusive partnership with Ashok Leyland, India's second largest commercial vehicle manufacturer, and plans to invest more than 500 billion rupees (approximately 40.45 billion yuan) in battery manufacturing projects in the next 7-10 years.

04 Strategies of other foreign companies

In addition to Chinese companies, companies from other countries are also entering the Indian market with different strategies. Some local Indian companies choose to cooperate with European and American technology companies to avoid dependence on Chinese technology.

· Cooperation between Nash Energy and the American company Rincell: The two parties signed a memorandum of understanding, and Rincell will transfer its high-rate nickel manganese cobalt (NMC) battery cell technology to Nash Energy for local production in India. This is aimed at meeting the needs of sectors such as drones, defence, aerospace and electric vehicles.

· Reliance Industries’ setback: Not all technology introductions are smooth sailing. Indian giant Reliance Industries had planned to cooperate with a leading Chinese lithium iron phosphate energy storage battery company to quickly establish battery cell production capabilities through technology licensing. However, as China tightened regulations on the overseas transfer of key technologies and cooperation negotiations were interrupted, Reliance shelved its local lithium battery production plan.

05 Challenges and future

Although the prospects are promising, the development path of India's lithium battery industry is full of challenges.

· Fragile supply chain: India lacks lithium resources and the supply chain is highly dependent on imports. Uncertainty has become a key obstacle to development.

· Complex policy environment: There are certain contradictions in the Indian government's policies towards foreign investors. On the one hand, it encourages foreign investment, but on the other hand, it sets higher localization thresholds through the PLI plan and so on. Frequent policy changes also bring uncertainty to companies.

· Technology dependence: As can be seen from the case of Reliance Industries, it is not easy for Indian companies to obtain core technologies, especially bypassing China’s advanced battery technology.

06 Future Outlook

The competitive landscape of India’s lithium battery industry in the future will be a struggle between multiple forces of “China, Japan, South Korea + local”. In the short term, Chinese companies still have obvious advantages in technology integration and cost.

But in the medium to long term, the key to victory or defeat lies in who can take the lead in achieving high-yield, low-cost large-scale manufacturing in India. The three-stage strategy of "technology + capital + localization" currently adopted by Chinese companies may be a feasible path for long-term development in India's complex market environment.

India’s huge market potential determines that this “dragon and elephant dance” will not end easily. For all participants, this is not only a business competition, but also a marathon about patience, adaptability and strategic depth.