How the Global Battery Crisis Is Testing India’s EV Dreams

As the world races toward electrification, a storm is brewing in the heart of the battery industry. What began as a global supply chain shuffle has now ballooned into a full-blown crisis—affecting prices, innovation, and policy strategies worldwide. And for India, an ambitious contender in the EV transition, the aftershocks are impossible to ignore.

Global Fires, Local Flares

The battery industry’s foundations are under pressure. China's recent clampdown on antimony exports—essential for battery flame retardants—has quadrupled prices to over $60,000 per metric ton, destabilizing supply chains from Seoul to San Jose. Meanwhile, Europe’s battery darling Northvolt has hit a wall, struggling against soaring energy costs and regulatory hurdles.

China controls 60% of global antimony supply (a critical mineral for lead-acid batteries) and over 75% of global battery production, making other nations vulnerable to supply disruptions.

India, heavily reliant on imports for battery cells and critical minerals, stands squarely in the path of these seismic shifts.

India’s Lithium Dependency Dilemma

Despite the fanfare around EV launches and green energy investments, India imports over 70% of its battery components, exposing it to raw material shocks and fluctuating global markets.

• Lithium, cobalt, and nickel are sourced largely from geopolitically tense regions.
• China commands significant sway over the refining and distribution pipelines.

EV Adoption at a Tipping Point

Battery costs account for up to 40% of an EV’s price in India. Any spike here reverberates across the market—especially in a country where price sensitivity governs buyer behavior.

• Price hikes risk alienating the urban middle class targeted by India’s green mobility push.
• Two-wheelers and e-rickshaws may see price stagnation or reduced subsidies.

Gigafactories vs. Reality

Government schemes like the PLI program and FAME II promise localization and scale, but execution remains sluggish.

• India still lacks end-to-end battery manufacturing capabilities.
• Ola Electric, Amara Raja, and Reliance are building gigafactories, but results will take time.

Innovation Sparks in the Ashes

The crisis has spurred interest in alternative chemistries and strategic alliances.

• India is exploring sodium-ion and solid-state batteries.
• Startups are developing modular battery swapping solutions.
• New joint ventures are forming to secure global mining rights.

Will India Accelerate or Stall?

The battery crisis may become the crucible in which India's resilience, innovation, and strategic autonomy are forged.

The question now is not whether India will electrify—but how fast, how smart, and how self-sufficient it can become while doing so.