India's Lithium Gap: $20B Investment Race Heats Up

India faces a substantial 208 GWh lithium deficit, with lithium-ion imports rising more than tenfold since FY18, reaching ₹37,624.6 crore by February FY26. This widening gap presents a significant opportunity for domestic manufacturing.

Amara Raja Energy is investing ₹9,500 crore to build a Giga Corridor in Telangana, targeting 16 GWh of cell manufacturing capacity by FY30. The first phase, aiming for 2 GWh, is slated for commercialization in June 2027. The company is also establishing a 5 GWh Battery Energy Storage System integration facility.

Exide Industries is investing approximately ₹6,500 crore in its lithium-ion venture, Exide Energy. It is developing a 6 GW advanced chemistry cell manufacturing plant in Bengaluru and a pack/module facility in Gujarat. The first phase will produce 3 GW of cylindrical and 3 GW of prismatic cells, with sample deliveries expected by mid-2026.

Both companies are strategically building India's battery manufacturing ecosystem to reduce import dependency and meet projected demand, estimated to reach 210 GWh by 2030. Exide aims to match Chinese production costs, supported by technology from SVOLT and a partnership with Hyundai Kia.

Financially, Amara Raja's FY26 revenue grew 7.5% to ₹13,814 crore, while Exide's standalone revenue rose 4.1% to ₹17,269 crore. Amara Raja shows higher capital efficiency with ROCE and ROE above Exide's.