EV battery outlook: Lithium-ion demand set to jump 48% by 2030, says ICEA report; Import reliance and EoL waste pose key challenges
The report estimates that total LiB demand will reach 115 GWh by 2030, with electric vehicle-linked usage expected to grow at a compound annual growth rate (CAGR) of 48per cent. In comparison, demand from stationary storage is projected to grow at 14per cent CAGR and from consumer electronics at 3per cent, ANI reported.
The surge in demand comes amid India's broader push towards its Net Zero targets and the government's supportive policies on clean energy adoption, domestic cell manufacturing, and battery end-of-life (EoL) management. However, the report also highlights structural challenges related to import dependence and environmental risks.
Imports rise as local capacity lags
'India currently lacks Li-ion cell pack manufacturing capabilities and mining infrastructure, making it heavily reliant on imports of LiBs consisting of critical battery-active materials such as lithium, cobalt, nickel, and manganese,' the report noted.
ICEA and Accenture estimate that cumulative demand for these critical materials will exceed 250 kilo tonnes between 2024 and 2030, translating to an import exposure of over $5 billion.
To address these risks, the government has launched initiatives including the
Critical Minerals Mission
and exemptions on trade duties for key minerals. The report also references the
Battery Waste Management Rules
(BWMR), introduced by the Central Pollution Control Board (CPCB) in 2022, which mandate responsible disposal and recycling of used batteries.
Collection remains low despite rules
Despite the regulatory push, about 39per cent of end-of-life consumer electronics batteries are not being collected, the report observed.
India's goals under its COP26 'Panchamrit' pledge include achieving 500 GW of non-fossil electricity capacity and cutting emissions by 1 billion tonnes by 2030. It also plans to reduce GDP emissions intensity by 45per cent and achieve net-zero carbon emissions by 2070.
According to the report, India's ability to meet these targets hinges partly on its capacity to scale Li-ion battery production while managing the supply chain and environmental footprint.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
New Indian Express
7 hours ago
- New Indian Express
Chinese trade curbs threatening $32 billion export ambition, warns India's electronics sector
NEW DELHI: India's smartphone and electronics industry has raised serious concerns over what it describes as informal but targeted trade restrictions imposed by China. The India Cellular and Electronics Association (ICEA), in a letter to the government, sought swift policy measures to address these unofficial restrictions, which could derail the country's $32 billion export-driven manufacturing ambitions. As per the ICEA letter, India's electronics manufacturing sector remains heavily reliant on China for high-precision tools, specialized machinery, and critical components. Over the past eight months, manufacturers have been facing informal export restrictions that are nearing the level of an outright ban. Shipments of essential equipment are either being withheld at the origin or delayed at Chinese ports, leading to operational inefficiencies, production delays and increased costs. Sourcing alternatives from Japan and South Korea is reported to be three to four times more expensive.
India.com
11 hours ago
- India.com
China one move put India's Rs 2756892800000 at stake! this industry is in danger due to…
China's latest actions are raising serious concerns for India's electronics industry. According to a letter from the industry body India Cellular and Electronics Association (ICEA) to the Indian government, China's measures can disrupt India's supply chain and weaken its role as a global manufacturing hub. Informal Trade Restrictions By China China has imposed several informal trade restrictions on India which is a threat to India's growing electronics sector. Industry leaders have expressed fears that this could negatively impact exports. India had set a target of $32 billion in smartphone exports by the end of FY2026, but China's tactics can derail this goal. In FY2025 alone, India produced electronic goods worth $64 billion. ICEA, which counts Apple, Google, Motorola, Foxconn, Vivo, Oppo, Lava, Dixon, Flex, and Tata Electronics among its members, warned that these Chinese actions are increasing operational costs for companies and reducing confidence in India's electronics export potential. Why Does China Target India? China's response was after India's rapid growth in electronics exports. Since 2020, India has increased its smartphone manufacturing. In FY2025, India produced $64 billion worth of products and exported $24.1 billion of that. In FY2015, India was at 167th in smartphone exports. Today, it's among the top exporters, with expectations of reaching $32 billion in exports by FY2026. Another major trigger for China is Apple's shift in manufacturing from China to India. Earlier it was dependent on China for iPhone production but Apple has been moving operations to India since 2020 under the Production-Linked Incentive (PLI) scheme. Through partners like Foxconn and Tata Electronics, Apple now manufactures about 20% of its global iPhones in India which has made dragon angry. $155 Billion Target at Risk China's recent moves can hamper India's long-term goal of achieving $155 billion in electronics manufacturing by 2030. ICEA warned that if the current disruptions are not resolved, India's share in global exports will reduce and will make it difficult for them to achieve their target. China's actions are causing operational challenges, higher production costs, and disruption within India's electronics sector. For instance, producing certain components locally and sourcing them from Japan or South Korea is 3 to 4 times more expensive than importing from China.
News18
14 hours ago
- News18
China's Moves Threaten India's Rs 2.6 Lakh Cr Smartphone Export Push, Warns Industry Body
Last Updated: China's actions are disrupting India's $32 billion export-linked manufacturing ambitions, warns ICEA. China's attempt to hamper India's manufacturing push of becoming a global hub seems to be working as the Industry representative of smartphone and electronics manufacturers, ICEA, has raised the alarm against the derailment threat on $32 billion export-linked manufacturing ambitions. The Industry body sought the urgent meeting with the government, as per the MoneyControl report, to consider the the series matter as these disruptions are causing trouble to the industry and backtracking the hard-won competitiveness and gains under the Production Linked Incentive schemes. ICEA represents major players like Apple, Foxconn, Lava, Dixon, Google, Tata Electronics, Flex, Oppo, Vivo and Xiaomi has sent the letter to the Prime Minister's Office, Ministry of External Affairs and DPIIT, as per MoneyControl report. It came amidst iPhone-manufacturer Apple's push to shift its manufacturing facilities to India from China. Five years back, Apple used to produce all its iPhone sold globally in China. But now the US company via its contract manufacturers Foxconn (Hon Hai) and Tata Electronics has been rapidly shifting production to India, accounting 20% of global iPhone output. Experts say these bottlenecks, if left unresolved, could roll back recent momentum and hamper India's ambitions of deeper participation in Global Value Chains (GVCs). What makes the situation more complex is that these measures are reportedly being executed in a phased and deliberate manner by Chinese authorities—through informal, verbal instructions to the General Administration of Customs (GAC), without any official circulars or involvement from the Ministry of Commerce (MOFCOM). 'These disruptions are leading to operational inefficiencies, impacting scale and above all raising costs of production, since producing this equipment locally or in collaboration with Japan or Korea costs 3-4 times higher than Chinese imports," ICEA highlighted. Smartphone Becomes Top Exported Product Of Country Earlier, the government data as cited by PTI report revealed that India's smartphone exports increased five fold to the US and about fourfold to Japan in the past three years. The smartphone exports rose by 55 per cent to $ 24.14 billion in 2024-25 from $15.57 billion in 2023-24 and $10.96 billion in 2022-23. In the last fiscal, the top five nations where India registered the highest growth in smartphone exports were the US, the Netherlands, Italy, Japan, and Czech Republic. India's exports to the United States alone rose from $2.16 billion in 2022-23 to $5.57 billion in 2023-24 and $10.6 billion in 2024-25. view comments Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
