China’s Ministry of Commerce and General Administration of Customs, in its latest announcement on October 9, implemented export controls on lithium-ion batteries, components and technologies to manufacture them. The list also includes cathode material compositions such as lithium iron phosphate, nickel, cobalt, and manganese hydroxides, and technologies used for producing the compositions. Similarly, graphite anode materials and related technologies have also been blocked.
In case of lithium-ion battery cells and packs, only advanced technologies with a weight energy density greater than or equal to 300 Wh/kg have been included in the export control list. This classification exempts batteries used in most mainstream EVs, consumer electronics, Electric two-wheelers and energy storage systems in the power sector. Such applications utilise batteries with energy density ranging from 100-280 Wh/kg, and thereby India’s imports of Lithium-ion cells for mainstream EVs will not be affected by this restriction. However, Indian manufacturers with plans of setting up facilities in collaboration with Chinese companies will be affected as the technology for producing lithium-ion cells and packs stands restricted. Effective from November 8, Chinese exporters will require a license from the State Council to transfer the restricted technologies.
Currently, both EV makers and battery makers in India are dependent on Chinese imports of lithium-ion cells. From the total imports of batteries in 2023-24, 75% of them were from China. Imports of lithium-ion cells from China in 2024-2025 amounted to USD 2.2 billion. Companies with top-selling EVs in India, like Tata Motors, include lithium-ion cells from Gotion and EVE, both Chinese manufacturers. Looking at the growing demand for Energy Storage Systems in India and the incentives offered by the central government under the Production-Linked Incentive (PLI) scheme, Indian companies have shown interest in partnering with Chinese firms to establish battery cell manufacturing plants. Amara Raja Energy and Mobility inked a deal with China’s Gotion for lithium-ion cell manufacturing in India. Exide batteries entered into an agreement with SVOLT Energy to use and commercialise its lithium-ion cell manufacturing technology in 2022. An advantage of partnering with Chinese companies was ensuring a secure supply of lithium, which has been a bottleneck for Indian investors in battery cell production. The latest controls, however, are likely to halt these partnerships. Viewing such partnerships involving the transfer of technology as a threat to China’s dominance in the market, the Chinese government had reportedly advised EV companies against transferring advanced EV technology and investing in countries like India and Turkey that can later become competitors. The latest export controls further reinforce this advisory.
To decrease its reliance on China for batteries, India must strengthen its own R&D ecosystem and explore diverse partnerships. Even in the case of PLI for cell manufacturing, beneficiaries have been delaying setting up plants citing equipment delays from China. This highlights that PLI implementation needs a reassessment to prioritise beneficiaries with existing in-house innovation capabilities.
The Indian market has also attracted other leading global battery manufacturers to set up plants in India, offering easier diversification to counter Chinese dominance. In addition to that, there have been efforts by Indian firms to develop local solutions across the value chain. Mahindra’s new assembly line is fully automated and uses an indigenously developed, patented process, but the battery packs will feature cells by BYD. In a recent development, Ola Electric announced the successful building of lithium-ion battery cells, which will be integrated into its vehicles starting from 2026.
Lastly, researching alternative and advanced technologies like sodium-ion batteries and solid state batteries offers long-term strategic advantages through greater supply chain resilience and cost benefits from raw materials that are abundantly available. Continued investment in academic and research institutions that possess significant capabilities to advance cell component and cell manufacturing, collaboration across the battery value chain, and strong domestic demand are crucial to expanding India’s battery technology capabilities. The export controls offer an imperative for local firms to address challenges posed by uncertainty from Chinese suppliers in the sector.