India currently sources 75 percent of lithium-ion batteries from China, with the country controlling 65 percent of global nickel processing, 68 percent of cobalt, and 60 percent of lithium processing.
11 Nov 2025 | 2129 Views | By Kiran Murali & Shruti Shiraguppi
Top executives from India's electric vehicle sector issued a clarion call for supply chain diversification at the India EV Conclave, warning that heavy dependence on China for critical components poses long-term risks to the industry's global competitiveness.
Eric Vas, President of EVs at Bajaj Auto, delivered a stark warning ...
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Top executives from India's electric vehicle sector issued a clarion call for supply chain diversification at the India EV Conclave, warning that heavy dependence on China for critical components poses long-term risks to the industry's global competitiveness.
Eric Vas, President of EVs at Bajaj Auto, delivered a stark warning during the panel discussion on 'Mapping India's EV Success Stories Across Segments' at Hyatt Regency Delhi. "If we take cells which are not competitive, we will lose globally," Vas stated, emphasizing the urgent need to de-risk from what he termed "hostile players."
India currently sources 75 percent of lithium-ion batteries from China, with the country controlling 65 percent of global nickel processing, 68 percent of cobalt, and 60 percent of lithium processing. This concentration of supply has raised concerns among Indian manufacturers, particularly as the country aims to achieve 30 percent EV penetration by 2030.
Vas acknowledged China's entrenched position in the supply chain. "China is an important player on many critical elements and it is difficult to pull them out from competition," he said. However, he advocated for a balanced approach: "Certainly we should produce cells and do it in partnerships with friendly companies."
The sentiment was echoed by Jayakumar G, Group President and Managing Director of Valeo India, who expressed concern about India's heavy reliance on Chinese imports. "Today we don't have any other option. We're heavily dependent on China," Jayakumar said, adding that his company is actively exploring alternative sources. "We should try all sources out, other than China."
Jayakumar revealed that Valeo is working with light rare earth materials as an alternative, since heavy rare earth elements face restrictions. "It'll take almost a year to get to work on other sources," he cautioned, highlighting the time and investment required for supply chain diversification.
India aims to localize 60 percent of its battery manufacturing supply chain by 2030, a goal that industry experts believe is critical not just for domestic security but also for competing in global markets. The Indian EV market, valued at $2.36 billion in 2024, is projected to grow to $164.42 billion by 2033, registering a remarkable CAGR of 57.23 percent.
Mahesh Babu, CEO of Olectra Greentech, offered a pragmatic view on the supply chain challenges. "There is no right or wrong in the supply chain issues. There are no perfect solutions. We can import now and at the same time try to de-risk for the future," he said. "It's a growing industry and we need to do everything to remain competitive."
Babu warned that the real problem would emerge if growth stagnates: "The problem may happen if there is no growth." He added that supply chain challenges will persist indefinitely. "Supply chain challenges will be there for life in one or the other form," he observed.
The discussion comes at a critical time for India's EV sector. India's electric vehicle sales surged 26.5 percent in 2024, reaching 1.94 million units, elevating overall EV penetration to 7.46 percent, up from 6.39 percent the previous year.
However, China's dominance extends beyond batteries—it commands over 70 percent of the world's battery production capacity and controls processing of critical minerals including 63 percent of global rare earth mineral mining and 90 percent of processing output.
The Economic Survey 2024-25 specifically highlighted concerns about India's import intensity in EV production, noting that the extent to which electric mobility is incentivized needs to account for trade dependencies with countries where India has persistent large deficits.
The India EV Conclave 2025 was presented by Chargezone, with Rosmerta Technologies as the Platinum Partner. The event is powered by IPG Automotive and Gulf Oil Lubricants India, with PTC serving as the Technology Partner. Associate Partners include Spark Minda, Radici Group, and Delta Electronics. The conclave also has trade partnerships with FADA, ASDC, and ICAT.