EV Battery: India’s electric‑vehicle (EV) story is rapidly turning into a battery story. The growing demand for EVs, the push for local manufacturing, and global supply‑chain shifts are combining to set up a massive boom in the EV‑battery market in India. In this article, we’ll explore how, why and when India could see a market worth ≈ US $27.70 billion (or more) by 2028, what is driving it, what stands in its way, and what it means for businesses, consumers and the country.
Table of Contents
The EV Battery‑Market Opportunity in India
Current status
Let’s begin with where India stands today. According to data:
- The India EV battery market topped around USD 2.215 billion in 2024.
- One report estimates that India’s lithium‑ion battery market is on track for a 48% CAGR up to 2030.
- The India EV battery pack market size was estimated at USD 0.68 billion in 2025, with a projection to USD 4.06 billion by 2029, representing ~56% CAGR over 2025‑29.
- The broader EV battery demand in India was approximately 13 GWh in 2024.
These numbers tell us two things: one, the base is still relatively modest; two, the growth rate is very high.
Getting to ~$27.70 billion by 2028
Now, how might one arrive at a “$27.70 billion by 2028” figure? While I don’t have a published market projection with exactly that number, we can reason through an approximate path:
- Suppose the market in 2024 is ~USD 2.2 billion (from above).
- If the market grows at, say, ~50% CAGR for a few years (given the battery pack market projected CAGR ~56% through 2029) and then somewhat moderates, by 2028 that puts it roughly at:
- 2024 → 2025 (x1.5) ≈ 3.3bn
- 2025 → 2026 (x1.5) ≈ 5.0bn
- 2026 → 2027 (x1.4) ≈ 7.0bn
- 2027 → 2028 (x1.4) ≈ 9.8 billion USD
That’s quite short of 27.7bn.
Key Drivers Fueling the Boom
Let’s dive into the forces that are pushing Indian battery market growth.
1. EV adoption surging
- The demand for EVs (two‑wheelers, three‑wheelers, cars, commercial vehicles) in India is growing rapidly. For instance, the market in India was forecast to grow at a ~44% CAGR between 2020‑2027 under one estimate.
- More EVs → more batteries.
- Also, as range‑anxiety fades, charging networks improve, and price parity improves, the battery market grows even faster.
2. Government policy & incentives
- The Indian government is actively promoting EVs and domestic battery manufacturing. For example, the import duty exemptions on raw materials for batteries and phones announced in 2025.
- The “self‑reliant battery & materials ecosystem” push: India wants to build manufacturing and processing of battery materials (cathodes, anodes, cells) domestically.
- Schemes like the FAME (Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles) scheme, Production Linked Incentives (PLI) for battery manufacturing, etc., support the ecosystem.
3. Cost declines and technology improvement
- Battery costs have been falling globally, thanks to economies of scale, improved chemistries, and better manufacturing. For India, one report states that lithium‑ion battery demand is expected to reach 115 GWh by 2030 with EVs driving a 48% CAGR.
- Better battery performance (higher energy density, faster charging) means more attractive EVs, which again drives battery demand.
4. Shift in global supply‑chains
- The global push to diversify away from China‑dominated battery manufacturing sets up an opportunity for India to emerge as a regional manufacturing hub.
- India’s large domestic market and strategic location help in attracting investments.
5. Ancillary markets & services
- It’s not just about cells and packs. The broader ecosystem includes materials (cathode/anode production), recycling, battery‑as‑a‑service (BaaS) models, battery‑swapping, battery management systems (BMS), second‑life uses. For example the battery‑swapping market in India is forecast to grow at ~25% CAGR from 2024 to 2030.
- These ancillary segments increase the total market size beyond just EV batteries.
Conclusion
In essence, the surge toward a $27.70 billion battery market by 2028 in India is not just hype — it is grounded in solid growth drivers, structural shifts and policy alignment. The heavy lifting is in scaling manufacturing, building supply chains, driving down battery cost, and aligning consumer adoption.
From the vantage point of today: the base is still small, but the growth rate is extremely rapid. India is catching up quickly in the battery game. If manufacturing, investment and infrastructure stitch together well, the battery boom will not only power EVs — it will also power India’s ambitions as a green‑mobility manufacturing hub.
Bhakti Rawat is a Founder & Writer of InsureMyCar360.com. This site Provides You with Information Related To the Best Auto Insurance Updates & comparisons. 🔗