The recent release of a report titled “Advanced Chemistry Cell Battery Reuse and Recycling Market in India” by NITI Aayog has put the spotlight on India’s battery market. The report reveals that the demand for batteries in India will increase significantly by 2030 due to a variety of factors, including advances in digitalisation and the increasing popularity of electric vehicles (EVs).
Expanding Demand for Batteries
According to NITI Aayog’s report, the total cumulative potential for battery storage in India will be 600 GWh by 2030. This projection is based on the global trend observed between 2010 and 2020 during which the demand for batteries grew at a compound annual growth rate (CAGR) of 25%, resulting in an annual demand of about 730 GWh. The same report suggests that by 2030, the demand for batteries is expected to grow fourfold, reaching an annual rate of 3,100 GWh.
Current Usage of Lithium-Ion Batteries
Lithium-Ion Batteries (LIBs) are currently prominent in the Indian market, primarily used by consumer electronics such as smartphones, laptops, notebooks, and tablets. With digitalisation continually integrating technology into daily life, this association is expected to persist. As a result, the cumulative market is forecasted to expand to 4.5 GWh.
Driving Factors for Battery Storage Adoption
EVs and consumer electronics are key contributors to the projected upsurge in battery storage adoption in India. NITI Aayog’s report states that EV sales made up 0.92 GWh, approximately 10% of the LIB market share. It also indicates that the electrification of transportation and the incorporation of battery energy storage in electricity grids will be significant growth drivers in the demand for batteries.
Regulatory Framework Recommendations
NITI Aayog’s report recommends the establishment of a coherent regulatory framework that incentivises all stakeholders’ participation in the recycling process. This measure would contribute significantly towards the development of the battery recycling ecosystem in India.
About Lithium-ion Batteries
Lithium-ion batteries utilise an intercalated lithium compound as one electrode material, distinct from the metallic lithium employed in non-rechargeable lithium batteries. The key components of a lithium-ion battery cell are the electrolyte, which enables ionic movement, and two electrodes. During discharge, lithium ions move from the negative to the positive electrode, reversing during charging.
Lithium-ion Battery Applications
Lithium-ion batteries have a wide range of applications, including usage in electronic gadgets, telecommunication, aerospace, and industrial applications. Their technological advantages have made them the preferred power source for electric and hybrid electric vehicles.