India Lithium Market Research Report, 2030

The Indian lithium market, while still in its nascent stage, is witnessing significant momentum driven by the country's ambitious goals for electric vehicle adoption and renewable energy storage. India doesn't yet have large-scale commercial lithium mining operations, the discovery of reserves, particularly the substantial find in Jammu & Kashmir, has ignited considerable interest and potential for domestic production. India heavily relies on imports for its lithium needs, making it vulnerable to global supply chain disruptions and price volatility. The government is actively promoting exploration and development of domestic lithium resources to enhance self-reliance and energy security. Geothermal brines, often found in tectonically active regions, and oilfield brines, a byproduct of oil and gas extraction, could potentially host lithium. Wastewater from industrial processes might also contain recoverable lithium. In-situ leaching technologies, which involve injecting a leaching solution into an ore body to dissolve minerals and then recovering the lithium-rich solution, could offer benefits such as reduced land disturbance and lower energy consumption compared to conventional mining. However, the applicability of in-situ leaching depends heavily on the geological characteristics of the lithium deposits, such as permeability and mineralogy. India's first battery-grade lithium refinery, utilizing dual-feedstock technology to process both mined and recycled materials, showcases advancements in this area. Modern refineries employ techniques like solvent extraction, crystallization, and ion exchange to remove impurities such as sodium, magnesium, and calcium, achieving high purity levels required by battery manufacturers. Innovations like zero-liquid discharge systems in refineries exemplify efforts to minimize water usage and environmental impact. Advanced crystallization and precipitation techniques are being implemented to achieve better control over the morphology and quality of the final lithium compounds. Precise control over temperature, concentration, and other parameters during crystallization allows for the production of lithium carbonate and hydroxide with consistent particle size and shape, which can enhance battery performance. According to the research report "India Lithium Market Research Report, 2030," published by Actual Market Research, the India Lithium Market is anticipated to grow at more than 19.93% CAGR from 2025 to 2030. In India, the development of protective coatings and interfacial layers for lithium metal anodes is gaining importance to enhance the safety and performance of next-generation batteries. Research focuses on materials like reduced graphene oxide and cellulose-based coatings modified with specific functional groups to mitigate dendrite formation and improve Coulombic efficiency. Studies analyze how lithium content and distribution within materials like Lithium Nickel Manganese Cobalt Oxide (NMC) and Lithium Iron Phosphate (LFP) affect energy density, cycle life, and rate capability. Enhancing lithium diffusion within cathode materials is crucial for fast charging and high-power applications. Strategies such as tailoring the morphology to nanowires or Nano sheets and even introducing controlled defects in the crystal structure are being explored to improve lithium ion transport. R&D projects are actively promoting a circular economy for lithium, encompassing battery reuse, remanufacturing, and the development of efficient recycling technologies to recover valuable materials and reduce reliance on virgin resources. Sustainable mining practices are also a key concern, with research exploring and advocating for more environmentally responsible mining techniques to minimize water usage, land degradation, and carbon emissions associated with lithium extraction. Investment in R&D is increasing, with funding and initiatives from companies, government agencies, and research institutions aimed at advancing lithium technologies and establishing domestic manufacturing capabilities. Collaborations and partnerships between industry players, research organizations, and universities are crucial for accelerating the development and commercialization of these technologies.

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The Indian lithium market, though currently import-dependent, has a growing demand for various lithium compounds driven primarily by the burgeoning battery manufacturing sector. Lithium Carbonate is a key raw material, widely used as a precursor in the production of cathode materials like Lithium Cobalt Oxide (LCO) and Lithium Iron Phosphate (LFP), which are essential for batteries in consumer electronics and increasingly in electric two-wheelers and some stationary storage applications in India. Lithium Hydroxide is gaining prominence due to its suitability for manufacturing high-nickel cathode materials such as NMC and NCA, favored for their higher energy density, crucial for electric cars and advanced energy storage systems that India is progressively adopting. Lithium Chloride, while having industrial applications like in air conditioning and as a flux in welding, has a smaller direct consumption in the battery sector compared to the carbonate and hydroxide, but it can serve as an intermediate in certain lithium processing routes. Other Lithium Compounds, including lithium metal which is used in some niche battery technologies and as a reagent in chemical synthesis and organ lithium compounds like butyl lithium which is important in polymer production, currently constitute a smaller segment of the Indian market but could see increased demand with the diversification of battery technologies and growth of specialty chemical industries within India. As domestic lithium production ramps up, the focus will be on refining these raw materials to battery-grade specifications to cater to the specific needs of Indian battery manufacturers and reduce reliance on varied international suppliers for these crucial inputs. India's approach to sourcing lithium is multifaceted, given its current lack of significant commercial domestic production. Hard Rock deposits, found in regions like Karnataka, represent a potential domestic source. While preliminary surveys have indicated the presence of lithium in these rocks, commercial extraction is yet to commence. The government is actively pursuing exploration and encouraging private sector involvement to leverage these hard rock resources, as they are a conventional and well-established source globally, offering relatively higher lithium concentrations. Brine deposits, such as those explored in Rajasthan, also hold promise. India has signed agreements with countries like Argentina to explore and potentially secure lithium from their extensive brine reserves. Extracting lithium from brines typically involves solar evaporation, followed by chemical processing. While India doesn't have large-scale natural brine resources comparable to the Lithium Triangle in South America, these international collaborations are crucial for securing a stable supply. Recycled Lithium is an increasingly important source as India aims to build a circular economy for batteries. With a growing number of end-of-life lithium-ion batteries from electronics and EVs, developing efficient and cost-effective recycling technologies is paramount. India heavily relies on imports to meet its lithium demands. The majority of these imports come from countries like China and Hong Kong, often in the form of lithium-ion batteries and processed lithium compounds. India is actively diversifying its import sources through collaborations with countries like Australia and Argentina to secure raw lithium and reduce its dependence on a single region. The recent discoveries of inferred lithium reserves in Jammu & Kashmir and potential resources in other states like Rajasthan and Chhattisgarh signal a move towards self-sufficiency, but it will take considerable time and investment to develop these resources into commercially viable operations and establish a robust domestic lithium supply chain. The Indian lithium market is predominantly driven by the Automotive sector With ambitious targets for EV adoption across all vehicle segments, the demand for lithium-ion batteries, and consequently lithium compounds, is experiencing exponential growth. From electric two-wheelers and three-wheelers, which are rapidly gaining traction, to passenger cars and commercial vehicles, lithium is the linchpin of India's electric mobility transition. This sector consumes the largest share of imported lithium, primarily in the form of battery cells and modules. As domestic battery manufacturing scales up, the demand for battery-grade lithium carbonate and hydroxide will surge, making the automotive industry the primary end-user for the foreseeable future. The Consumer Electronics industry, encompassing smartphones, laptops, tablets, and other portable devices, is another significant consumer of lithium-ion batteries in India. While the battery sizes in these devices are smaller compared to EVs, the sheer volume of consumer electronics sold annually translates to a substantial demand for lithium. The Industrial sector utilizes lithium-ion batteries for various applications, including motive power in forklifts and other material handling equipment, as well as backup power solutions like UPS systems. While currently a smaller segment compared to automotive and consumer electronics, the increasing adoption of automation and the need for reliable power backup in industrial settings are expected to drive growth in lithium demand within this sector. As India expands its renewable energy capacity (solar and wind), grid-scale and residential ESS are crucial for stabilizing the grid and ensuring reliable power supply. Lithium-ion batteries are the dominant technology for these applications due to their high energy density and cycle life. The automotive sector, particularly electric two-wheelers and increasingly electric cars, constitutes the largest share of lithium consumption in the Indian market, albeit indirectly through imported batteries and cells.

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Nikita Jabrela

Business Development Manager

Considered in this report • Historic Year: 2019 • Base year: 2024 • Estimated year: 2025 • Forecast year: 2030 Aspects covered in this report • Lithium Market with its value and forecast along with its segments • Various drivers and challenges • On-going trends and developments • Top profiled companies • Strategic recommendation By Product • Lithium Carbonate • Lithium Hydroxide • Lithium Chloride • Other Lithium Compounds (lithium metal, butyl lithium, etc.)

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By Source • Hard Rock (Spodumene) • Brine • Recycled Lithium By End-Use Industry • Automotive (Electric Vehicles) • Consumer Electronics • Industrial • Others (Energy Storage Systems etc.) The approach of the report: This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analyzing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources. Intended audience This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to agriculture industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.