India's battery raw materials supply chain is undergoing a fundamental transformation, driven by the need to reduce import dependence and build a resilient domestic ecosystem. Currently, India imports the vast majority of essential materials used in advanced cell battery manufacturing, including cathode active materials, anode active materials, electrolysers, and copper foil separators . This dependence has been flagged as a threat to India's ambitions in electric mobility, clean power, and strategic defence applications .

Supply Chain: India Battery Supply Chain Report

The government's policy response includes the ₹18,100 crore PLI scheme for ACC batteries, the upcoming ₹12,000 crore component incentive scheme, and the National Critical Mineral Mission to strengthen domestic exploration, processing, and recycling of key minerals . India will need more than 200,000 tonnes of AAM and over 400,000 tonnes of CAM by 2030 to support projected domestic battery manufacturing capacity . However, the supply chain faces significant challenges. The approval process for testing and qualifying an advanced material like cathode by cell manufacturers in India is about two to four years, versus just 27 days in China . Additionally, Indian cell manufacturers often are contractually mandated to buy cell components from Chinese firms with which they partner for technology .

To overcome these challenges, companies are focusing on backward integration and export markets. Epsilon Advanced Materials is focusing on the export market to begin with until the demand from local cell manufacturers increases . Himadri is building a fully integrated supply chain, from high-purity coal tar pitch to anode materials, ensuring full intellectual property control . By 2035, India aims to have a more self-reliant battery supply chain, though success will depend on effective policy implementation and industry collaboration .

Get More Insights: India Battery Material Market Report