EV-Ready India: Unlocking the Potential of Anode Production for a Greener Future
By Pradeep Karuturi
India’s journey towards becoming a global leader in electric vehicles (EVs) is gaining momentum. The increasing adoption of EVs is not just a testament to India’s commitment to reducing carbon emissions but also a reflection of the growing demand for sustainable and efficient transportation solutions. However, as as the country accelerates towards an electrified future, we have an opportunity to reshape the transport sector through an inclusive and just transition. As our recent whitepaper highlighted, the inclusion of women across EV value chains is crucial for ensuring that this transition is gender inclusive and empowering. However, as we move forward, another critical element demands our attention — localising the production of essential battery components, particularly anode
Lithium-ion batteries (LiBs), the heart of every EV, consist of four critical components: the cathode, anode, separator, and electrolyte. Among these, the anode stands out as the second most valuable component, contributing significantly to the battery’s performance, efficiency, and cost. Despite its importance and the fact that India possesses both the raw materials and the industrial base necessary for anode production, this area remains a largely untapped opportunity.
Currently, India’s demand for lithium-ion batteries is projected to reach 260 GWh per annum by 2030, which translates into a staggering requirement of 286 kilotonnes of anode material each year. Yet, domestic production capacity for anodes is still in its infancy, with only a handful of companies making strides in this space. The result is a heavy reliance on imports, particularly from countries like China, which dominates global anode production.
Anode production is a low-hanging fruit for India. The country has natural graphite reserves and an established industry producing graphite electrodes — an industry that shares several processes with anode manufacturing. Additionally, by-products from the petroleum and steel industries can be leveraged to produce synthetic graphite, another crucial material for anode production.
The Indian government has taken commendable steps towards localising Advanced Chemistry Cells (ACCs) through initiatives like the Production Linked Incentive (PLI) scheme. However, to truly secure its position in the EV supply chain, India must focus on scaling up cell component production like anode. This would not only reduce dependency on imports but also create new economic opportunities, drive innovation, and support the country’s broader goals of energy security and sustainability.
Our upcoming issue brief, titled “EV-Ready India: Localising Anode Production for a Greener Tomorrow,” delves deep into the current state of anode manufacturing in India. It outlines the challenges, explores the enabling factors, and provides strategic recommendations to unlock this critical sector’s potential. Stay tuned as we explore how India can take crucial steps to become a self-reliant powerhouse in the global EV market.
