The battery imperative

India's EV transition is shifting upstream, with growing focus on domestic battery, component and materials manufacturing to build a resilient and globally competitive electric mobility ecosystem.

- Pranav Vadehra

India's electric mobility narrative is rapidly evolving.

For years, the spotlight remained on how many electric scooters rolled out, how quickly automakers electrified their fleets, and whether consumers would adopt EVs at scale. The real transformation is now unfolding deeper in the value chain as the centre of gravity is shifting decisively toward the manufacturing of critical EV components - especially batteries, power electronics, motors and thermal systems. This transition reflects a deeper structural change: value creation in EVs is increasingly concentrated upstream in batteries, electronics, and materials rather than in final vehicle assembly. “The most critical gap remains in domestic lithium-ion cell manufacturing and upstream materials. While the government approved 50 GWh of Advanced Chemistry Cell manufacturing capacity under the PLI scheme, actual commissioned capacity has been significantly lower so far. As of October 2025, only around 1.4 GWh, about 2.8 per cent of the target, had been commissioned,” says Pratik Kamdar, Co-founder & CEO, Neuron Energy, highlighting the early stage of India’s gigafactory ecosystem. “Domestic production of cathode materials, electrolytes and battery-grade chemicals will define the next phase of localisation,” he asserts.

Why India's EV future will be built in its battery factories: domestic supply chains are now strategic

At the heart of the shifting ecosystem lies the lithium-ion battery. Accounting for up to 40 per cent of an EV’s cost, the battery is no longer just a component - it is the defining technology. Control over cell chemistry, manufacturing processes and pack integration determines not only vehicle pricing, but also range, safety and lifecycle performance. For India, which has historically depended on imports for advanced cell technology, this represents both a vulnerability and an opportunity.