Synopsis: The government is expanding policy support for battery recycling and Advanced Chemistry Cells (ACC) to strengthen India’s domestic battery ecosystem. The move is expected to boost companies involved in battery manufacturing, recycling, critical minerals, and EV supply chains.
India’s battery ecosystem is entering a new phase of growth as the government expands its focus beyond cell manufacturing to include battery recycling, critical minerals, and component production. The broader policy push aims to build a self-reliant battery value chain, reduce import dependence, and support the country’s rapidly growing electric mobility and energy storage sectors.
The opportunity is substantial, with India’s battery demand projected to rise from 28 GWh in 2025 to 272 GWh by FY2030, while total energy storage capacity is expected to reach 888 GWh by 2035-36. Companies involved in battery manufacturing, recycling, and battery materials could emerge as key beneficiaries of the government’s expanding support framework.
Broadening India’s Battery Policy Ecosystem
The Union Ministry of Heavy Industries (MHI) is expanding its policy support beyond cell production to strengthen India’s entire domestic battery manufacturing ecosystem.
This shift includes plans to introduce specific policies for niche battery technologies and to widen the current incentive system for Advanced Chemistry Cells (ACC). The goal is to encompass more operators and partners across downstream segments such as component manufacturing, cell technologies, and raw material mining.
A major catalyst for this policy push is the critical need for resource security and a circular battery economy. Battery recycling is projected to become an essential domestic source for crucial minerals like lithium, cobalt, nickel, and graphite over the next decade.
This infrastructure is becoming increasingly vital as India’s first wave of end-of-life electric vehicle batteries is expected to reach recyclers at scale toward the end of the 2020s, helping the country reduce its heavy reliance on imports.
Overcoming Bottlenecks and Meeting Rising Battery Demand
India’s battery manufacturing sector has faced delays due to supply chain constraints, funding challenges, and slow project execution. By late 2025, only a limited portion of the 50 GWh capacity targeted under the Rs. 18,100 crore ACC Production Linked Incentive (PLI) scheme had become operational.
Expanding domestic battery cell manufacturing and recycling has become increasingly important as India’s battery demand is expected to surge from 28 GWh in 2025 to 272 GWh by FY2030, with the country’s total energy storage requirement projected to reach 888 GWh by 2035-36. Strengthening local production can help reduce dependence on battery imports while supporting the country’s clean energy transition.
To strengthen the battery recycling ecosystem, the Ministry of Heavy Industries (MHI) has partnered with the Office of the Principal Scientific Adviser to the Prime Minister and the European Union to develop pilot projects focused on battery recycling.
The government is also considering measures to boost domestic battery component manufacturing, including an Approved Models and Manufacturers (ALMM)-like framework for battery components. These initiatives will complement mineral refining schemes introduced by the Ministry of Mines, helping build a stronger and more self-reliant battery supply chain.
Stocks to watch
Gravita India Ltd
Gravita India Ltd is one of India’s leading recycling companies with a strong presence in lead recycling and increasing investments in lithium-ion battery recycling. The company is expanding its capabilities to recover critical minerals such as lithium, cobalt, nickel, and graphite from end-of-life batteries. With a market capitalisation of Rs. 13,743 cr, the shares of Gravita India Ltd were trading at Rs. 1859.75 per share, up from its previous close of Rs. 1,854 per share.
Exide Industries Ltd
Exide Industries Ltd is one of India’s largest battery manufacturers, catering to automotive, industrial, and energy storage applications. The company is investing heavily in advanced chemistry cell (ACC) manufacturing through its subsidiary Exide Energy Solutions and is also developing battery recycling capabilities. With a market capitalisation of Rs. 35,615 cr, the shares of Exide Industries Ltd were trading at Rs. 419.45 per share, down from its previous close of Rs. 424.50 per share.
Amara Raja Energy & Mobility Ltd
Amara Raja Energy & Mobility Ltd is a leading battery manufacturer that has diversified beyond conventional lead-acid batteries into lithium-ion technology. The company is establishing a giga factory for ACC cells, battery packs, and battery recycling infrastructure under its Amara Raja Giga Corridor project. With a market capitalisation of Rs. 16,012 cr, the shares of Amara Raja Energy & Mobility Ltd were trading at Rs. 874.90 per share, down from its previous close of Rs. 887.70 per share.
Ola Electric Mobility Ltd
Ola Electric Mobility Ltd is building an integrated electric vehicle ecosystem spanning EV manufacturing, battery cells, battery packs, and battery recycling. Through its Battery Innovation Centre and cell manufacturing initiatives, the company aims to reduce dependence on imported battery technologies. With a market capitalisation of Rs. 18,347 cr, the shares of Ola Electric Mobility Ltd were trading at Rs. 39.64 per share, down from its previous close of Rs. 40.42 per share.
Himadri Speciality Chemical Ltd
Himadri Speciality Chemical Ltd is one of the leading manufacturers of carbon materials and specialty chemicals, with a growing focus on lithium-ion battery materials. The company produces advanced anode materials and has been expanding its presence in battery-grade products used by EV and energy storage manufacturers. With a market capitalisation of Rs. 33,377 cr, the shares of Himadri Speciality Chemical Ltd were trading at Rs. 661.80 per share, up from its previous close of Rs. 660.20 per share.
Tata Chemicals Ltd
Tata Chemicals Ltd is expanding its presence in the battery materials segment by developing lithium-ion battery recycling technologies and producing critical battery chemicals. The company is also exploring opportunities across cathode materials, battery-grade chemicals, and resource recovery. With a market capitalisation of Rs. 18,215 cr, the shares of Tata Chemicals Ltd were trading at Rs. 715 per share, down from its previous close of Rs. 720 per share.
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