Dr. Parvez Hayat, former IPS

India’s transition to electric mobility has become a central pillar of its strategy to meet long-term climate goals, strengthen energy security, and reduce dependence on fossil fuel imports. The transportation sector contributes significantly to greenhouse gas emissions and urban air pollution, making the large-scale adoption of electric vehicles an important pathway toward sustainable mobility.

Over the past five years, India’s electric vehicle market has expanded rapidly. This growth has been driven by several policy initiatives, including the Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme, state-level EV policies, and production-linked incentives aimed at encouraging domestic manufacturing of advanced battery technologies. These policy measures have created momentum for the development of a robust electric mobility ecosystem in the country.

A critical factor in the success of India’s electric mobility transition is the development of a strong domestic ecosystem for Advanced Chemistry Cell (ACC) batteries. These batteries constitute nearly half of the total cost of electric vehicles and are the core technology that determines vehicle performance, range, and efficiency. Despite growing demand for electric vehicles, India currently remains heavily dependent on imports of lithium-ion battery cells and critical minerals such as lithium, cobalt, and nickel.

This dependence presents multiple challenges. Heavy reliance on imported battery components exposes the country to supply chain disruptions, geopolitical risks, and global price volatility. In an increasingly competitive global environment where clean energy technologies are becoming strategically important, this dependence can limit India’s ability to scale its electric mobility ambitions sustainably.

This study examines India’s preparedness for large-scale Advanced Chemistry Cell manufacturing by reviewing policy frameworks, market developments, and supply chain dynamics. It identifies structural gaps in areas such as access to critical minerals, domestic manufacturing capacity, and research and development capabilities. At the same time, it highlights emerging opportunities in battery recycling, domestic production, and international resource partnerships.

Advanced Chemistry Cell batteries represent the next generation of high-performance energy storage technologies. These include lithium-ion batteries and other emerging chemistries designed to provide higher energy density, longer life cycles, and improved safety standards. As global demand for electric vehicles and renewable energy storage grows, ACC technologies are expected to play a decisive role in shaping the future of clean energy systems.

At the global level, the ACC manufacturing ecosystem is currently dominated by a small group of countries, particularly China, South Korea, and Japan. These nations control a large share of battery manufacturing capacity and also dominate the upstream supply chain for critical minerals. China alone accounts for more than 70 percent of global lithium-ion battery manufacturing capacity, providing it with a significant strategic advantage in the global electric vehicle value chain.

For India, one of the world’s fastest-growing automobile markets, the absence of a strong domestic battery manufacturing base represents a strategic vulnerability. At present, the country depends heavily on imports not only for finished battery cells but also for essential raw materials such as lithium, cobalt, nickel, manganese, and graphite.

Such dependence exposes India to several risks, including price volatility in global markets, potential supply chain disruptions, growing trade imbalances, and geopolitical uncertainties. Addressing these challenges requires a comprehensive national strategy that combines domestic manufacturing, technological innovation, resource security, and international collaboration.

Building a resilient Advanced Chemistry Cell ecosystem will therefore be critical for India’s long-term electric mobility ambitions. Strengthening domestic battery manufacturing, promoting research and innovation, developing recycling capabilities, and securing access to critical minerals through global partnerships will help reduce import dependence and position India as a competitive global hub for advanced battery technologies.