Currently, the EV-battery market is dominated by players from only three countries, all of them in Asia: China, Japan, and Korea.
India needs lithium to produce lithium-ion batteries used for electrification of transport and storage of renewable energy to boost the nation's efforts towards electrification of transport.
India’s first Lithium plant has been set up at Gujarat in 2021, where Manikaran Power Limited will invest Rs 1000 crore to set up this refinery. The refinery will use Lithium ore to produce base battery material. The growing demand for Lithium in India is driven by the goal of Indian government to become one of the largest electric vehicle markets world over. NITI Ayog has set an ambitious target to increase the number of electric vehicles by 30 percent by 2030. In line with these goals, the Lithium refinery will help make Gujarat a hub for Lithium-ion batteries, as there are already a few battery manufacturing plants that are being set up in Gujarat. This factory becomes important, because India currently relies on other nations like China, Japan, and Taiwan for its electric battery supply.