India’s battery industry is set for a massive expansion in the coming years, with government incentives and investments from major companies driving the growth. The country’s demand for batteries is expected to surge seven times by 2032, driven primarily by the growing electric vehicle (EV) market.

The Indian government has been actively promoting the domestic battery industry through various schemes and initiatives, aiming to reduce dependence on imported batteries. Companies like Neogen Chemicals and HEG are among those that have made significant investments in the sector, focusing on advanced battery materials and components.

Neogen Chemicals, a leading chemical company in India, has announced plans to set up a new manufacturing facility for lithium-ion batteries in the country. The move is expected to help the company capitalize on the growing demand for EV batteries and reduce its dependence on imported raw materials.

HEG, another major player in the Indian battery industry, has also made significant investments in recent years. The company has established a new joint venture with Japan’s Furukawa Electric to produce lithium-ion batteries for electric vehicles.

The surge in demand for EV batteries is driven by the government’s ambitious plans to promote electric mobility in the country. As part of its ‘Faster Adoption and Manufacturing of Electric Vehicles’ (FAME) scheme, the Indian government has announced incentives for the production of EV batteries, including a tariff reduction of 30%.

The growing demand for EV batteries is expected to benefit companies that are well-positioned in the supply chain. Investors looking to capitalize on this trend may consider stocks that are major players in the battery industry or have significant exposure to EV manufacturers.

Stocks to Watch:

  • NALCO Limited (NCL)
  • HEG Limited
  • Neogen Chemicals Limited

The Indian battery industry is poised for significant growth in the coming years, driven by government incentives and investments from major companies. As the demand for EV batteries surges, companies that are well-positioned in the supply chain are likely to benefit.