Ever wondered how much of an Indian electric car is actually made in India? The body, brakes, seats and wiring are mostly made here. But the most expensive part, the battery cell, mostly comes from abroad. The dependence on imported EV battery cells in India is the biggest gap in the “Make in India” story for electric vehicles.
In this article, we explain where the money goes in an EV, how much India depends on China, what the government is doing about it, and why it matters for the long run.
Cost Breakdown of an Electric Car
A battery cell makes up roughly 25% of an EV’s price. For example, on an electric car that costs ₹15 lakh, about ₹3 to 4 lakh goes only towards the cells.
Here is a simple way to see what is local and what is not:
- Mostly made in India: body, brakes, suspension, wiring and the assembly of the battery pack.
- Mostly imported: battery cells, magnets used in the motor, and chips.
A battery pack is like a box that holds many small cells. India builds the box, but most of the cells inside it come from other countries.
How Much Does India Depend on China?
- China is the largest supplier of parts used in EV batteries. Some key numbers:
China produces about 90% of the world’s lithium iron phosphate cathode material, which is a key battery material. It also holds a similar share of graphite anode production. - One report says that in FY2026, about 84% of India’s lithium-ion cell imports came from China. The same report puts India’s dependence on Chinese rare earth magnets at 85% to 90%.
- India’s two largest battery companies hold only seven lithium-ion patents between them. China’s CATL holds about 50,000.
This shows that the gap is not only about factories. It is also about technology and research.
There is one more hidden import. The battery management system is the software that controls charging, heat and cell balance. It usually comes along with the cell maker’s technology, so it is imported with the cells.
What Do India’s Biggest Carmakers Use?
- Tata Motors is India’s biggest electric car maker. Roughly 4 out of every 10 electric cars sold in India are Tata cars. Its Nexon EV and Curvv run on cells from two Chinese companies, Gotion and EVE.
- Mahindra also uses Chinese cells in its EVs. Its XUV400 first used cells from South Korea’s LG Chem, but LG Chem stopped making that type of cell and could not supply enough of them. So Mahindra moved to China’s Farasis for that model. Its newer BE 6 and XEV 9e run on cells from BYD, which is also a Chinese company.
- Maruti’s first electric car imports its full battery system, which includes the cells, the pack and the management software, from BYD’s FinDreams unit in China.
Where Does India’s Lithium Come From?
Lithium is the key material inside an EV battery, and India imports 100% of it.
In 2023, India found an estimated 5.9 million tonnes of lithium ore in Jammu and Kashmir. However, the auction for it was cancelled twice, and no mining has started.
Finding a resource is only the first step. Mining it, refining it and turning it into battery material takes many more years.
What Is India Doing About It?
India’s plan is to build gigafactories. A gigafactory is a very large plant that makes battery cells.
The government’s main scheme for this is called the ACC PLI scheme. Here is where it stands:
- The scheme has a budget of ₹18,100 crore and aims to build 50 GWh of cell making capacity.
- Of this, 40 GWh has been given to domestic manufacturers.
- But only about 1.4 GWh, which is just 2.8% of the target, had actually been delivered according to a recent report.
- In July 2026, the government opened a new global tender for another 10 GWh. Bids were due on October 13, 2026.
Reports point to a few reasons for the delay:
- Delays in visas for foreign technical experts.
- Rules on local manufacturing.
- Missing technology.
Who Is Making Cells in India Right Now?
- Ola Electric (Tamil Nadu): As of early 2026, it was the only plant in India making EV cells, mainly for its own scooters. Even here, the cathode material comes from Belgium’s Umicore, the fast charging technology comes from Israel’s StoreDot, and the equipment comes from South Korea.
- Tata Group’s Agratas (Sanand, Gujarat): It is setting up a pilot line for LFP cells, and large scale production is expected in early 2027.
- Reliance and Amara Raja: Both are building their own plants. Production is expected between late 2026 and 2028.
Can Recycling Help?
Recycling old EV batteries could help in the future. In time, it could give back more than 40% of the lithium India needs.
However, most EV batteries in India are still being used in cars and scooters. It will take many years before enough old batteries are available for recycling.
Why This Matters for India
Depending on one country for the most important part of an EV can be risky. Here is why:
- Supply risk: If cell supply slows down, EV production and deliveries slow down too. Tata Motors has said that its electric commercial vehicle deliveries depend on Chinese cell supply recovering.
- Price risk: Cells are about a quarter of an EV’s cost. So changes in import prices or in the rupee can affect what buyers pay.
- Technology gap: The next generation of battery technology is being built by companies that already lead the market. India needs to invest more in research and battery chemistry to catch up.
India has done very well in services, and it should keep doing so. But it also needs to build more of its own products. India does not need to make everything on its own. The aim is to depend less on others for one critical part.
Conclusion
Make in India is working only partly for EVs. The car carries an Indian badge and runs on Indian roads, but the battery technology inside it is still globally sourced. The next few years of cell production will decide how “Indian” an Indian electric car really is.
Disclaimer: This article is for educational and informational purposes only. It does not constitute investment advice or a recommendation to buy or sell any security. Investments in securities markets are subject to market risks. Please read all related documents carefully and consult a SEBI-registered investment adviser before making any investment decision.