India Lithium Market

India Lithium Market Size

The Indian Lithium Market size is anticipated to grow at a CAGR of 6.1% from 2023 to 2028.

The lithium market in India is anticipated to grow as a result of declining lithium-ion battery prices and the emergence of brand-new, exciting markets, like energy storage systems (ESS) for both commercial and residential applications. A medium-sized lithium-ion battery system called the Li-Rack battery has been developed in India for use in commercial applications, multi-family buildings, and other demanding storage-intensive projects. Consumer preferences are quickly shifting towards small and portable devices, which has increased the demand for effective storage and power backup solutions. Additionally, the market is also growing as a result of the widespread use of lithium-ion batteries in automobiles.

India's growing lithium-ion battery recycling industry is expected to open up opportunities for the country's market. In addition, the goods and service tax on all varieties of lithium-ion batteries has been lowered by the Indian government from 28% to 18%. As a result, Lithium-ion batteries are now more widely used and less expensive in India. Furthermore, as a result of the government's promotion of renewable energy sources, there is now a greater need for effective storage options, such as lithium-ion batteries.

By 2030, India wants to be a significant EV adopting country. As the country moves towards the widespread adoption of electric vehicles, the government has announced a number of policies and incentives that are anticipated to drive the market during the forecast period. Due to the government's emphasis on e-mobility, domestic battery production has increased in India. The Indian government wants 30% of its fleet to be electric by 2030. Additionally, the Indian government announced income tax exemptions for potential EV buyers in July 2019 and reduced the goods and services tax (GST) on EVs from 12% to 5%. The Indian government has also established a National Mission on Transformative Mobility and Battery Storage in an effort to promote clean energy. The above policy initiatives by the government are anticipated to propel market growth of lithium in India.

Additionally, the government allocated INR 5,500 Crores for the second phase of the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) India Scheme in August 2018 to encourage the use of EVs and domestic lithium-ion battery production (which went into effect in April 2019). Numerous suppliers of power and energy solutions and producers of automotive parts, including Amara Raja Batteries, intend to locate their lithium-ion battery manufacturing operations in India to take advantage of the country's growing market for environmentally friendly vehicles. Due to the aforementioned factors, the country's lithium-ion battery market is anticipated to grow from 2023 to 2028 as a result of India's strategy to encourage the use of electric vehicles.

India Lithium Market: By Product

The alloy is expected to be the fastest-growing segment in the market from 2023-2028 owing to its material's attributes, which include its light weight, high tensile strength, and high yield strength. In recent years, Al-Li alloys have become more well-liked as potential light metals with safe uses in a range of aircraft structures and related aerospace applications. Additionally, aluminum-lithium alloy is a perfect material for astronautics due to its high strength and resistance to the outside environment. Due to this, the segment has grown faster than expected.

India Lithium Market: By Source Type

Based on source, India lithium market has been further bifurcated into brines and hardrock. The hardrock segment is anticipated to be the largest in the market from 2023-2028. The main factor driving the segment's growth is the advanced operational developments to achieve efficient production and sustainable methods. Additionally, the cost of producing hardrock is considerably lower than that of brine. For example, average cash cost for 11 hard-rock producers expected to be US$2,540/t LCE in 2019. The aforementioned elements are causing the segment's revenue to increase rapidly.

India Lithium Market: By Application

The consumer electronics segment is anticipated to be the fastest-growing segment in the market from 2023-2028. Lithium-ion batteries power various electronic gadgets like smartphones, laptops, smart watch, and remote controls. The size of the country's population and its level of disposable income have a significant impact on consumer electronics sales. India's rising living standards and rising disposable income have raised the demand for consumer electronics over the years. Additionally, the availability of the internet at incredibly reduced prices has dramatically increased smartphone penetration in India. India became the world's second-largest smartphone market after China in 2019, with 158 million shipments and 7% YoY growth, surpassing the United States for the first time on an annual level as of January 2020.

Due to the aforementioned factors, consumer electronics segment to dominate India lithium-ion battery market.

India Lithium Market Share and Competitor Analysis

The paramount competitors covered in the India lithium market include FMC Corporation, TDS Lithium-Ion Battery Gujarat Private Limited (TDSG), Toshiba Corporation, Bharat Electronics Limited (BEL), Telemax India Industries Pvt. Ltd., Okaya Power Group, Trontek Group, Nexcharge, Albemarle Corp., and SQM S.A. among others.

Please note: This is not an exhaustive list of companies profiled in the report.