September 1, 2022: Lead batteries continue to dominate India’s electric vehicles sector, but lithium is gradually increasing its market share, the India Energy Storage Alliance (IESA) said on August 23.

Lead acid batteries accounted for 81% of the market in 2021, according to the IESA’s India Electric Vehicle and Component Market Overview Report 2021-2030.

The IESA said the lead batteries share was the result of continuing high demand for electric rickshaws.

However, lithium is eating into market and in 2021, for the first time, demand for these batteries exceeded the 1GWh threshold, the report said.

Among lithium ion chemistries, lithium iron phosphate is the preferred option for electric three- and four-wheelers, while nickel manganese cobalt is the preferred option for electric two-wheeled vehicles and e-buses.

The national EV market is set to expand at a compound annual growth rate of 49% between 2021 and 2030, according to the report’s business as usual scenario — reaching annual sales of 17 million units by that time, with nearly 15 million of those projected to be electric two-wheelers.

Meanwhile, annual demand for batteries up to 2030 is anticipated to increase at a CAGR of 41%, reaching 142GWh.

In April, ENTEK said it was investing to expand its manufacturing of AGM battery separators to India and the US, in response to expanding demand for energy storage solutions for inverters, industrial applications and EVs.

Last month, the boss of India-based Amara Raja Batteries said his company was looking into the possibility of expansion through greenfield investments or acquisitions for its lead battery business in the Indian-Ocean rim.

Chairman and MD Jayadev Galla said there would always be a place for lead battery technology — and warned that the rising cost of lithium batteries for EVs presented new challenges.

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