The Indian market researchers have reported that the Battery Technology Industry, specifically the Lithium-Ion Battery market, will flourish in the next five years. The market for the batteries is likely to increase at a CAGR of 34.8% during the next five years. The increase in the demand for the batteries in various sectors of the nation will encourage the OEMs and other small and medium battery manufacturers to increase the production of the batteries. Although COVID-19 might pose a hurdle in expansion, even then the Central Government and the concerned authorities are continuously working for uplifting the Battery Technology Industry and promoting other green resources. The prime minister of our country, Mr. Narendra Modi, announced Aatmnirbhar Bharat, wherein the country will minimize the import from other nations and will focus on expanding the Indian manufacturing market. This initiative will help MSMEs increase production and sales within the nation, which will positively affect India’s GDP.
The Battery Technology Market to Grow in Various Sectors of the Country
The growing electric vehicle market is the core and primary reason for the growth of the Battery Technology Industry within the country. Although, coronavirus has already caused severe damage to our country’s financial conditions and upcoming plans, even then many companies and OEMs are looking at the present situation in a different way. It is the right time for the production and manufacturing companies to replan their company’s goal and work for future prospects. Our Central Government announced the Aatmnirbhar Bharat initiative, which encourages local manufacturing of the goods, instead of importing from other nations.
A couple of days ago, the Minister of Road Transport and MSMEs in India, Nitin Gadkari, said that the government would support the local production of the goods in various sectors, including the electric vehicle market. He was confident and said that by 2025, India would be one of the biggest exporters of the same type of goods, it is importing nowadays from other countries. It is evident from such initiatives that Electric Mobility would expand in India in the coming future. Since batteries are the primary component in EVs, the growth of the electric vehicle market will positively impact the Battery Technology Industry in the nation.
Apart from the Electric Vehicle Industry, the Energy Storage System (ESS) sector is likely to flourish in the coming future. It includes the production and manufacturing of energy storing devices for telecom, solar power plants, military, power tools, etc. Since generating energy from the batteries is considered a greener and cleaner mode compared to burning fossil fuels; therefore, the Battery Technology Industry is likely to prosper in the future.
How will the country make sure that the Battery Technology Industry is rising?
The Central Government of India and concerned Ministries and Authorities are working to encourage and uplift the local manufacturing of goods. The Battery Technology Industry is one of the most promising industries that will prosper in the future. Since the demand for the batteries in India is soon going to rise, the production companies and other OEMs have started to increase their manufacturing capacity. But we still need a stable and reliable source of raw materials. Therefore, more mining plants are set up to extract more ray materials and meet future demands. Along with the plants, well planned and structured supply chain management is required, resulting in a robust Electric Mobility Ecosystem. But for all this management, we need a 24/7 Electric Supply all across the country.
The primary reason that will help the Battery Technology Industry grow is the increase of Foreign Investment in this sector. Many foreign OEMs and production companies are planning to shift their plants from China to India in the future. It will help India to increase employment and will increase the demand for Battery Technology in various other sectors in the nation. The primary market would be the Electric Vehicle Industry, and the country is confident of influencing the buyers to opt for EVs instead of Combustion Engine Vehicles by 2030.
Although the Industries may seem to be a bit scattered in the present times, the strong fundamentals and structured plan will benefit the Indian market in the coming future. India is continuously trying to strengthen foreign relations, which will help gain more investments from the International market. Not only Foreign Investors, but Indian companies like Tata Motors, Mahindra and Mahindra, and Ashok Leyland are working on the expansion of Electric Mobility in the nation. Hence, it will positively impact the growth of the Battery Technology Industry of the country.