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India’s electric vehicle industry is growing rapidly, driven by government initiatives, rising fuel costs, and increasing environmental awareness. At the core of this transition are EV battery manufacturers in India, powering the future of sustainable mobility. From two-wheelers to electric cars and buses, electric battery companies are investing heavily in advanced technologies to meet the rising demand.
With the dominance of lithium-ion technology and a growing network of charging stations, electric vehicle battery manufacturers in India are becoming crucial players in the global clean energy race. Investors are also eyeing opportunities in India’s top battery companies, with the sector showing strong growth potential.
Battery Industry in India – A Brief Overview
Indian EV battery market is witnessing a strong push from both private players and government policies. Automotive battery manufacturers in India are focusing on higher energy efficiency, faster charging, and longer life cycles. The market is led by top EV battery manufacturers in India supplying batteries for electric cars, two-wheelers, and commercial vehicles.
Government schemes like FAME-II, tax benefits, and state-level incentives are fueling this growth. With India ranking among the largest automobile markets globally, the shift towards electric mobility presents a massive opportunity for electric vehicle battery manufacturers listed in India as well as emerging startups.
Government Initiatives and Schemes for Electric Vehicles
Indian government has taken several initiatives to accelerate the transition towards cleaner energy and promote electric mobility. In the Union Budget of 2023-24, approximately ₹35,000 crore was allocated for key investments to facilitate this shift and achieve net-zero targets by 2070. With initiatives like Production Linked Incentive Scheme (PLI) and Faster Adoption of Manufacturing of Electric Vehicles Scheme – II (FAME – II) have been rolled out to provide boost to the electric vehicle industry. These schemes offer incentives and subsidies to manufacturers and consumers, thereby incentivizing adoption of electric vehicles and prompting the development of related infrastructure.
Additionally, the recent introduction of the Electric Mobility Promotion Scheme 2024 (EMPS 2024) underscores the government’s commitment to accelerating the adoption of electric vehicles. This scheme offers financial support for the purchase of electric two-wheelers and three-wheelers, aiming to drive widespread adoption and promote the growth of the electric vehicle manufacturing ecosystem in India. Overall, these initiatives demonstrate the government’s proactive stance toward adopting a green transportation ecosystem and reducing carbon emissions.
In this blog post, we’ll take a deep dive into the best electric vehicle battery manufacturers in India. We’ll explore how these companies are shaping the burgeoning EV ecosystem and driving India’s shift towards sustainable mobility.
Top Battery Stocks in India 2024 as per Returns
Here is the graphic highlighting the best battery stocks in India as per the returns:
- Himadri Speciality Chemicald
Known for its expertise in chemical manufacturing particularly in producing materials essential for lithium ion batteries. These materials play a vital role in the development of high performance and durable EV batteries. In December 2023, the company unveiled plans to invest ₹4,800 crore in the manufacturing of components for lithium ion batteries. According to the announcement this investment, which will span 5-6 years highlights the company’s commitment to tapping into the growing demand for EV technology.
- Graphite India Ltd
Graphite India is a key supplier of graphite electrodes, crucial for EV batteries. Recently, they invested Rs. 50 crore in Godi India Private Ltd, securing a 31% stake. Godi India specializes in eco friendly battery tech for EVs and energy storage, like Lithium ion and Sodium ion batteries. They aim for net zero carbon by 2040. This aligns with Graphite India’s goal of diversifying into advanced battery tech signaling a big move in the growing EV and energy storage sectors.
- Exide Industries Ltd
This company, known for making batteries for regular cars, is now also making batteries for electric vehicles. They’re investing ₹60 billion to build a 12 GWh Li-Ion cell plant in stages. This helps them meet the rising demand for EV batteries.
- Hindalco Industries
A major player in the aluminium and copper industry in India is expanding into the electric vehicle market. On December 12, 2023, they announced an Rs. 8 billion investment to build a battery aluminium foil manufacturing plant in Odisha. This facility, expected to begin operations by July 2025, will produce 25,000 tonnes and be powered by solar energy. It aligns with the projected national demand of 40,000 tonnes for battery grade aluminium foil by 2030.
With a focus on exports and serving both domestic and international markets, Hindalco is also exploring partnerships with global lithium ion cell manufacturers. They’ve signed an MoU with Phinergy and IOC Phinergy to develop aluminium air batteries.
- Amara Raja Batteries Ltd
Amara Raja Batteries Ltd, a top name in India’s battery market is now into electric vehicles. They’re focusing on lithium batteries, EV chargers and energy storage solutions through their new energy division. In FY 2023, they launched Amara Raja Advanced Cell Technologies (ARACT) to create batteries suited for Indian climates. ARACT also supplies battery packs and chargers mainly for two and three wheelers.
Amara Raja is building a large lithium ion cell and battery pack plant in Telangana, with a capacity of 16 GWH. They’re investing Rs. 95 billion over ten years for this project. While the new energy division’s revenue is currently low, it’s expected to triple to Rs. 7.5 billion in FY24 as they start supplying to the electric two-wheeler market.
- Tata Chemicals Ltd
Tata Chemicals is playing a big role in the Tata Group’s push into electric vehicles showing India’s focus on sustainable transportation. This fits into the broader vision of Ratan Tata’s leadership, which has expanded into new industries like electric mobility. Tata Chemicals recently signed an MoU with the Gujarat government to set up a 20 gigawatt lithium-ion cell manufacturing unit, highlighting its importance in the EV sector.
With plans to invest Rs. 29 billion to increase capacity, Tata Chemicals aims to play a big role in India’s EV ambitions, making electric mobility more affordable and sustainable while reducing the country’s carbon footprint.
Factors to Consider Before Investing in Battery Companies in India
If you are looking to invest in electric battery companies or EV battery stocks, here are some important points to evaluate:
- Electric Vehicle Market Growth: With increasing adoption of EVs, the demand for lithium-ion batteries is soaring. Government incentives, EV charging infrastructure, and consumer preferences can drive battery company growth.
- Renewable Energy Expansion: Renewable energy projects rely heavily on battery storage. Policies supporting solar and wind energy directly boost demand for electric vehicle battery manufacturers listed in India..
- Regulatory Framework: Changes in environmental regulations, emission norms, and clean energy subsidies can impact profitability.
- Supply Chain Stability: The availability and cost of raw materials like lithium, cobalt, and nickel affect India’s top battery companies.
- Technological Advancements: Companies investing in next-gen battery tech with longer life, higher efficiency, and faster charging tend to have a competitive edge.
Should You Invest in Battery Stocks?
Investing in electric vehicle battery manufacturers in India can be profitable but it comes with challenges:
- High Competition – Many new players are entering the market.
- Regulatory Risks – Policy changes can impact margins.
- Technology Disruption – New innovations could make existing tech obsolete.
- Consumer Adoption – EV growth depends on infrastructure and affordability.
Final Words
Batteries are the backbone of India’s EV revolution. As top EV battery manufacturers in India leading innovation, the sector is set for long-term growth. If you’re investing in battery stocks, align your decisions with your risk appetite and consult a financial advisor before making a move.
FAQs – EV Battery Manufacturers in India
Who are the top EV battery manufacturers in India?
Exide Industries, Amara Raja Batteries, Eveready Industries India, Indo National, and HBL Power Systems are among India’s top battery companies.
Which companies manufacture lithium-ion batteries for EVs in India?
Exide, Amara Raja, Tata chemicals are leading electric vehicle battery manufacturers in India producing lithium-ion batteries for two-wheelers, cars, and buses.
What is the growth potential of electric battery companies in India?
With rising EV adoption and renewable energy integration, electric battery manufacturers in India are expected to see strong growth in the next decade.
How is the Indian government supporting the battery industry?
Indian government supports the battery industry through schemes like PLI, FAME-II subsidies, and import duty reductions, aiming to boost domestic manufacturing and reduce dependence on foreign imports.
What are the risks associated with investing in battery stocks?
Risks include fast-changing technology, high competition, policy changes, raw material price volatility, and unpredictable market demand, which can impact profitability and growth potential for battery companies in India.
Happy investing and thank you for reading!
Disclaimer:
This website content is only for educational purposes, not investment advice. Before making any investment, it’s important to do your own research and be fully informed. Investing in the stock market includes risks, and you should carefully read the Risk Disclosure documents before proceeding. Please remember that past performance doesn’t guarantee future results, and due to market fluctuations, your investment goals may not always be achieved.
