Batteries are the silent workhorses of today's society, powering everything from smartphones to electric automobiles. We use batteries in our daily lives for everything from electric vehicle operation to TV remotes. However, their importance is frequently overlooked. As India places more emphasis on producing renewable energy, the need for batteries has increased to unprecedented levels.

They are also playing an increasingly important role in powering our energy infrastructure and the transportation sector as the country moves closer to a sustainable future. The size of the  battery industry in India is projected to be USD 7.20 billion in 2024 and is set  to increase at a compound annual growth rate (CAGR) of 16.80% to reach USD 15.65 billion by 2029. Because of government policies that assist the manufacturing industry, India is anticipated to be a major investment hotspot for battery companies in the years to come.

Factors Driving Growth Potential of the Battery Market in India

1. The rising demand for electric vehicles (EVs) and battery energy storage systems

India's EV adoption rate is anticipated to rise sharply in response to the country's growing need for renewable energy sources. In 2023, its market size was valued at around USD 8.03 billion. During the forecast period, its market size is projected to rise from $23.38 billion in 2024 to $117.78 billion by 2032, at a CAGR of around 22.4%, and is expected to keep growing. 

2. Higher adoption of EVs: the government has plans to achieve a target of 30% electric vehicle adoption by 2030

India's transport industry is relying more and more on electric cars (EVs). This transition to electric vehicles (EVs) might have a major impact on the nation's advancement towards a number of important UN Sustainable Development Goals (SDGs). With sales of gasoline-powered vehicles falling from 86% in 2020 to 76% in 2023, the market is moving away from traditional fuel-powered vehicles and towards alternative fuel-powered vehicles. Compared to CY 2020, the number of vehicles powered by alternative fuels increased by 400% in CY 2023. After CNG, EVs have the lowest lifetime cost. By 2030, India wants to sell 30% of electric vehicles.

3. Government support via PLIs for local manufacturing (Make in India) encourages the manufacturing sector

India aims to cut emissions with lithium-ion batteries for electric vehicles but currently relies on imports. To address this, the government launched a Production Linked Incentive (PLI) scheme offering Rs 18,100 crore over five years to boost domestic manufacturing of advanced batteries with a target capacity of  50 GWh of standard batteries and 5 GWh of specialised ones. This will reduce reliance on imports and make India a competitive player in the electric vehicle battery market. 

4. Growth in the automotive sector – two-wheeler and Passenger vehicle

The rising demand and adoption of electric micro-mobility vehicles, such as electric two-wheelers and passenger vehicles, is an ongoing trend in the Indian market. Plus, India is a very price-sensitive market.  The majority of the people in India prefer two-wheelers as their daily transport due to the traffic congestion. If you compare electric two-wheelers to conventional internal combustion engine vehicles, they are much more energy efficient. Electric motors can use energy more efficiently because they convert a higher proportion of the electricity from the grid into the driving force for the wheels. They are also cheaper to buy than regular four-wheelers.

5. Majority of e-rickshaws and three-wheeler vehicles to be EV only 

India is the center of innovation, with its rapidly expanding market for electric motorcycles and auto rickshaws. Currently, electric versions make up over half of three-wheel auto rickshaw sales; electric two-wheelers make up roughly 4% of sales, as stated earlier, while electric vehicles make up roughly 1%. The International Energy Agency (Paris-based autonomous intergovernmental organisation) projects that India's energy demand could be reduced by 30% by 2050 if the government's goals are met.

Top Battery Stocks in India

Given the optimistic future for the Indian battery business, here are some of the listed battery companies in India to watch:

Exide Industries Ltd.

With its headquarters located in Kolkata, India, Exide Industries Limited is a global Indian corporation that manufactures storage batteries. The company’s main aim is to create and build stronger relationships with its global business partners.  Currently, their batteries are also being used in the automotive sector. It has around 9 factories that are located all over India. By late 2024 or early 2025, Exide Industries intends to put the first phase of its lithium-ion cell manufacturing facility in Bangalore into operation. The Rs 6,000 crore project's first phase would have a capacity of around  6 GWh (gigawatt hour). The overall capacity of this project is around  12 GWh.

Amara Raja Batteries Ltd.

Dr. Ramachandra N. Galla founded The Amara Raja Group, a USD 1.75 billion conglomerate that consists of 6 firms, operates 17 businesses, and is supported by a staff of more than 16,000 individuals. It produces batteries for use in industrial and automotive settings. Additionally, the company supplies batteries to a variety of industries, including worldwide operations, communications, UPS, solar, defence, and railroads. During the fourth quarter that concluded in March 2024, its consolidated profit after tax skyrocketed by 62% YoY to Rs 230 crore. 

Tata Power Ltd.

Tata Power Company Ltd. is a power-producing and electric utility firm in India. Its headquarters is in Mumbai. The goal of Tata Power, the biggest integrated power company in India, is to improve a billion people's lives by providing them with innovative, cost-effective, and sustainable energy solutions. Tata Power Company has commissioned a battery energy storage systems (BESS) project in Chhattisgarh in 2024. According to them, the project includes a 100 MW Solar PV Project coupled with a 120 MWh Utility Scale Battery Energy Storage System (BESS).

HBL Power Systems Ltd.

HBL Power Systems Ltd. is India’s leading research-based manufacturing and engineering company in Hyderabad, Telangana. It produces customised batteries and offers electronic solutions in addition to developing and designing them. It provides services to a number of industries, including telecom, data centres, aviation, railroads, defence, and oil and gas. Electric mobility and railway electronics comprise the company's electronics segment. 

Tata Chemicals

Chemical companies in India can indirectly benefit from the growth of the battery industry. Batteries require multiple chemical elements. And this is where Tata Chemicals comes in. The company has a lithium-ion battery recycling plant. The company salvages Lithium Carbonate from spent batteries. This chemical is widely used to manufacture energy storage devices. Cobalt Sulfate is another element that Tata Chemicals salvage from used batteries. This is used for electroplating. Moreover, the company has recently started planning to set up a lithium-ion cell plant in Gujarat. Once built, the company will be a formidable player in the homegrown li-ion battery cell industry.

The Bottom Line

The battery market in India is expanding rapidly. This business has a promising future because of a supportive government, rising consumer demand for EVs and energy storage, and a strong local manufacturing sector. Investors looking to participate in India's power revolution will find that the battery stocks mentioned above are among the many companies that stand to gain from this exciting expansion. However, it's also important to keep in mind that this is just a list of battery stocks and companies in India. Make your buying decision only after doing your own thorough research.

-Nischay Avichal