Bhargava states that relying on a single supplier for raw materials creates a high-risk dependency that discourages companies from investing in India's domestic cell manufacturing.
27 Aug 2025 | 5924 Views | By Kiran Murali
After starting the production of Maruti Suzuki's first global battery electric vehicle (BEV), eVitara, and Suzuki’s first lithium-ion battery, cell and electrode manufacturing in the Gujarat plant, Chairman RC Bhargava said the absence of domestic cell manufacturing is a major obstacle for India's electric vehicle industry and heavy reliance on imports ...
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After starting the production of Maruti Suzuki's first global battery electric vehicle (BEV), eVitara, and Suzuki’s first lithium-ion battery, cell and electrode manufacturing in the Gujarat plant, Chairman RC Bhargava said the absence of domestic cell manufacturing is a major obstacle for India's electric vehicle industry and heavy reliance on imports of raw materials is pulling back companies from investing in cell manufacturing for BEVs.
"I'm told that the economic side would be around Rs 20,000 crores to put up a battery plant. If I put up a plant, the raw material is not available to me. As an investor, what is my risk level? Especially if the raw material is controlled by one supplier. Risk is very high. That is possibly one of the factors that is deterring people from making investments in battery cell manufacturing in India," Bhargava told reporters.
The new lithium battery manufacturing plant that opened Tuesday is set up by Suzuki Motor and its partners Toshiba and Denso. The use of batteries produced at this plant is limited to producing batteries for just hybrid vehicles, not to support BEVs) "Nobody is making battery cells in India. One of the problems of electric vehicles today is that people are packaging the cells into batteries, but actual production of cell is not taking place in India," he said.
Managing Director of India's largest electric vehicle maker Tata Passenger Electric Mobility, Shailesh Chandra, had also earlier highlighted the importance of localizing cell manufacturing in India to address supply chain risks, geopolitical challenges, and long-term sustainability for the electric vehicle industry. Mahindra & Mahindra is also actively considering cell localisation, while Hyundai has partnered with Exide Industries for locally produced batteries.
Currently, India's electric vehicle dreams are powered largely by imported cells and batteries from China. Localisation of cell manufacturing is something that is being looked at keenly as made-in-India Li-ion batteries hold immense potential to drive the adoption of EVs, besides making the country less import-dependent.
However, the biggest challenge for lithium-ion battery manufacturing in India is the availability of raw materials. India lacks significant reserves of minerals such as lithium, cobalt, nickel, and graphite, although some discoveries have been made in recent years. This forces battery makers to depend on imported raw materials. India's lithium-ion battery industry heavily depends on imports, with China and Hong Kong being the primary suppliers.
China commands a significant share of critical mineral processing and production globally. Across key commodities such as nickel, cobalt, and lithium, China alone is responsible for processing 65%, 68%, and 60% of the global output, respectively.
Bhargava noted that the recent supply choke of rare earth magnets from China, which is very crucial for electric vehicles, was a warning signal on dependence on imports for raw materials.
"What I hear now is that the rare earth magnet supply might get solved. But it was a warning signal...If I was an investor investing, I have that very much in mind. That the risk element of setting your battery plant and depending on imported raw materials, and that import coming from one supplier, is a very big risk," he said.
Bhargava underlined the need for India to become self-reliant in manufacturing by developing its own cleaner technologies and alternative chemistries. He believes that relying on foreign countries for raw materials and technology poses a significant risk, and that Indian scientists have the capability to create their own solutions.
Bhargava also emphasized that the Prime Minister's vision for self-sufficiency is achievable and urges Indian companies to work with confidence to reduce their dependence on imports.