Caught in Beijing’s tightening grip, Indian EV battery makers face delays, rising costs and technology barriers that threaten their giga-factory ambitions and global competitiveness.
India’s push to build a domestic electric vehicle (EV) battery industry is facing a critical hurdle: China’s export restrictions on advanced cell technology. According to a Mint report, without Beijing’s approval, Indian firms are struggling to access know-how essential for scaling up high-performance battery production.
A 9 September report by CRU International warned that China will maintain a decisive lead in lithium iron phosphate (LFP) batteries, with non-Chinese rivals lagging behind in terms of cost and technical efficiency.
While Indian players are still trying to secure reliable technology, Chinese firms are already offering third-generation LFP cells to customers.
Meanwhile, Indian battery projects are already slipping. Ola Electric, Reliance Industries (RIL) and Rajesh Exports were penalised earlier this year for missing targets under the government’s production-linked incentive (PLI) scheme for advanced chemistry cells. Executives admit delays in approvals and documentation are slowing partnerships with Chinese suppliers.
Tata Group’s Agratas is building two gigafactories with a combined 60GWh capacity to serve Tata Motors and Jaguar Land Rover, while Exide and Amara Raja have tied up with automakers including Hyundai, Kia, Piaggio and Ather. Yet progress hinges on sourcing technology that meets global benchmarks.
The risks extend beyond technology. Inputs such as synthetic graphite, essential for LFP cells, now also require export licences from China. This is similar to what happened earlier with rare earths, reportedly noted Vikram Handa, managing director of Epsilon Advanced Materials.
LFP batteries are growing rapidly, rising from less than 20% of the global EV market in 2020 to nearly 50% in 2024. Analysts expect the share to climb further, raising fears that India’s inability to access proven technology could derail its giga-factory ambitions.
The report concluded that unless India accelerates indigenous R&D or secures alternative global partners, its EV sector risks being locked out of the high-performance battery race.
