India’s lithium-ion dependence exposes EV sector to supply risks amid China curbs

India remains reliant on imports for lithium and other key minerals used in electric vehicle (EV) batteries, a dependence that continues to expose the sector to global supply disruptions. 

Minister of State for Heavy Industries Bhupathiraju Srinivasa Varma said domestic demand for lithium-ion battery materials is being met entirely through imports, leaving the EV ecosystem vulnerable to external shocks. Referring to inputs from the Society of Indian Automobile Manufacturers, he underlined that India’s dependence on critical minerals such as lithium-central to EV battery production-remains high. 

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"Recent policy developments in China, specifically the decision to impose export controls and licensing requirements on high-performance lithium-ion batteries, cathode materials, artificial-graphite anodes, and associated manufacturing technology, could tighten near-term global supply conditions," said

He noted that such measures could create supply-chain risks for Indian EV manufacturers that depend on Chinese midstream processing.

The remarks come against the backdrop of China’s decision to introduce export controls and licensing norms covering high-performance lithium-ion batteries, cathode materials, artificial graphite anodes and related manufacturing technologies-moves that could constrain global availability in the near term.

Lithium, along with other battery inputs such as cobalt and nickel, is traded in global markets where prices are shaped by demand-supply trends. Any disruption, including export restrictions, could result in price volatility and alter cost structures for EV manufacturers in India.

At the same time, the minister said the eventual impact on battery prices would hinge on factors such as technological progress, economies of scale and the pace of localisation within the country. 

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