India's EV Battery Supply Chain: Strategic Partnerships Fueling Market Acceleration

India's electric vehicle (EV) battery supply chain is undergoing a seismic transformation, driven by a confluence of strategic partnerships, government incentives, and international collaborations. As global demand for clean energy technologies intensifies, India is positioning itself as a critical player in the EV battery ecosystem, leveraging domestic and cross-border alliances to accelerate market entry and reduce reliance on imports.

Strategic Partnerships: The Backbone of Domestic Production

The most notable example of this shift is Suzuki Motor Corporation's aggressive foray into India's EV battery landscape. By forming joint ventures with Tata Gotion, TDS Lithium-ion Battery Gujarat (TDSG), FinDreams Battery, and ELIIY Power, Suzuki is securing a stable supply of batteries for electric motorcycles, hybrids, and battery electric vehicles (BEVs) Suzuki Forms Strategic Partnerships to Strengthen EV Battery^[2]. A pivotal development is the establishment of a battery R&D center in collaboration with ELIIY Power at Suzuki's Kawasaki Plant, which aims to localize advanced battery technology and reduce dependency on foreign suppliers Suzuki Forms Strategic Partnerships to Strengthen EV Battery^[2].

Similarly, Ola Electric's ambitious plans to build a 1 GWh advanced chemistry cell (ACC) manufacturing plant by 2023—expanding to 50 GWh in the long term—underscore the role of private investment in scaling domestic production India’s lithium-ion cell supply chain – Leading players^[5]. These initiatives are bolstered by the Indian government's Production Linked Incentive (PLI) scheme for ACC batteries, which has attracted over ₹4,930 crore in investments from entities like Suzuki, Toshiba, and Denso for their Gujarat-based TDSG venture Electric Vehicles Battery Production India | S&P Global^[3].

Government Policies: Catalyzing Localization

India's policy framework is a cornerstone of its EV battery strategy. The PLI scheme, launched in 2022, offers financial incentives to manufacturers based on incremental sales, aiming to reduce outsourcing from 76% in 2022 to less than 52% by 2035 Electric Vehicles Battery Production India | S&P Global^[3]. Complementing this is the Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme, which provides subsidies for EV purchases and infrastructure development A comprehensive analysis of India’s electric vehicle battery supply^[1].

According to a report by S&P Global Mobility, these policies are projected to drive India's EV battery demand from 4 GWh in 2023 to 139 GWh by 2035 India’s lithium-ion cell supply chain – Leading players^[5]. This growth is further supported by state-level incentives, such as Gujarat's tax breaks for battery component manufacturers, which have spurred investments in anodes, cathodes, and electrolytes by firms like Epsilon and Gujarat Fluorochemicals India’s lithium-ion cell supply chain – Leading players^[5].

International Collaborations: Securing Raw Materials and Technology

A critical challenge for India's EV battery ambitions is its lack of domestic reserves for lithium, cobalt, and nickel. To address this, the government established Khanij Bidesh India (KABIL) Ltd., a joint venture tasked with securing raw materials from lithium-rich nations like Australia, Argentina, and Bolivia India’s lithium-ion cell supply chain – Leading players^[5]. For instance, KABIL's partnership with Australia's lithium producers ensures access to critical minerals, while collaborations with Chile's state miner Empresa Nacional de Mineria aim to diversify supply chains A comprehensive analysis of India’s electric vehicle battery supply^[1].

Simultaneously, India is attracting foreign technology and capital. Japan's planned $100–400 million investment in India's EV battery and recycling sectors—led by companies like Toshiba and Denso—highlights the nation's growing appeal as an alternative to China in global supply chains Japan Eyes Strategic Investment in India’s EV^[4]. These partnerships not only provide technical expertise but also align with broader geopolitical efforts to decouple from single-source dependencies Japan Eyes Strategic Investment in India’s EV^[4].

Market Dynamics and Investment Opportunities

The India EV battery market, valued at USD 2,215 million in 2024, is projected to grow at a compound annual growth rate (CAGR) of 22.6% to reach USD 13,891 million by 2033 Japan Eyes Strategic Investment in India’s EV^[4]. This surge is fueled by the dominance of lithium-ion batteries, particularly LFP (Lithium Iron Phosphate) variants, which offer cost advantages and thermal stability for two- and three-wheelers—segments accounting for 90-95% of EV sales India EV Battery Pack Market Analysis Report 2024-2029^[6].

Investors are increasingly targeting India's battery recycling sector, which is expected to gain traction under the Battery Waste Management Rules of 2022. Companies like Log9 Materials and VoltUp are scaling LFP and NCM cell production, addressing both local demand and export potential India EV Battery Pack Market Analysis Report 2024-2029^[6].

Challenges and the Road Ahead

Despite rapid progress, India faces hurdles, including limited domestic mineral reserves and the need for robust recycling infrastructure. However, strategic partnerships are mitigating these risks. For example, TDSG's Gujarat plant, which began electrode production in 2025, now localizes over 80% of battery value, with plans to expand into global exports A comprehensive analysis of India’s electric vehicle battery supply^[1].

As India's EV battery supply chain matures, it is poised to become a linchpin in the global transition to sustainable transportation. For investors, the confluence of policy support, technological collaboration, and market growth presents a compelling case for long-term engagement.