Batteries are electrochemical devices that convert potent chemical energy into boundless electric power. They achieve this energy transformation through an electrochemical reaction involving the transfer of electrons between materials in a circuit.

The battery sector is experiencing tremendous growth due to several factors, the rising demand is fuelled by consumer preferences and decarbonization efforts. In India, EV sales exceeded 1 million units, tripling since 2021, significantly boosting battery demand. Global competition and innovative product development are intensifying in response to consumer needs, particularly in the Lithium-ion sector which has seen a remarkable 65% increase in demand to around 550 GWh in 2022 from 330 GWh in 2021. Advancements in technology and manufacturing process are projected to drastically reduce EV battery prices, making them more accessible and ultimately contributing to the electronic vehicle movement. Government initiatives such as reduced GST and exemptions are further bolstering the industry. Major economies like USA & Japan are heavily investing in renewable energy infrastructure, clean transportation, and battery components demonstrating global efforts to drive growth in the EV sector.

Even though the EV battery sector is growing exponentially, there are several factors that are acting as barriers to overall growth. One of the major factors is the limited availability of raw materials and the geographical concentration. Environmental impacts and human rights concerns also pose challenges, EV battery manufacturing is causing emissions in the range of 2,400 to 16,000 Kgs of CO₂. Raw material mining also causes environmental issues such as biodiversity loss, water scarcity, soil contamination, etc. Safety hazards arise due to temperature-related incidents affecting battery performance, potentially leading to explosions, and raising concerns about human safety.

The concentration of lithium and cobalt reserves in countries like Bolivia creates a risk, particularly in the mining sector with instances of child labour and unsafe conditions. This concentration of raw materials in a few countries makes it difficult to ensure a stable and sustainable supply of raw materials, this concentration is also responsible for certain price surges.

The Indian government is actively bolstering the EV battery sector through comprehensive initiatives. Notable among these are the National Programme on Advanced Chemistry Cell (NPACC) with a focus on domestic ACC production of 50 GWh. The implementation of a Production Linked Incentive (PLI) aims to achieve a manufacturing capacity of 50GWh of ACC batteries, supported by a substantial allocation of INR 18,100 Crores. The National Mission on Transformative Mobility & Battery Storage prioritizes EV and battery component production through the Phased Manufacturing Plant (PMP) while collaborating with NITI Aayog, MoP, and MoUD drive charging infrastructure and battery storage expansion. On a global scale, various nations are advancing battery-related initiatives. The European Battery Alliance collaborates with the US Li-Bridge alliance for the development of lithium-ion and next-generation batteries. The United States introduced the National Blueprint for Lithium Batteries, focusing on securing raw materials and R&D. Japan's Strategic Energy Plan targets a substantial increase in domestic car battery production to 100 GWh by 2030. The Battery Association for Supply Chains in Japan received US$ 910 million in subsidies for battery production facilities. Korea has unveiled the K-battery Blueprint and established a formidable alliance among leading domestic battery manufacturers, aiming to enhance tax incentives, R&D, and industrial networking.

Global efforts in EV battery research and development are prominent across multiple nations:

• Australia: The Australian Renewable Energy Agency (ARENA) invested over US$197 million in battery technology R&D, supporting advancements in battery systems and commercial-scale applications.
• Europe: LAVOISIER, backed by a EUR 10.2 million (US$113 million) government grant from France's Centre Val-de-Loire region, focuses on battery design and fabrication. Europe's Energy Storage Funding Initiative supports projects ranging from EV batteries to hydrogen fuel cells.
• India: Institutions like Central Electrochemical Research Institute (CECRI), IITs, IISc, and C-MET are actively researching battery materials development, while CECRI is entirely dedicated to electrochemistry-based technology research.
• Japan: The Advanced Low Carbon Technology Research & Development Program (ALCA-SPRING) accelerates high-capacity secondary battery R&D to fabricate innovative batteries.
• Korea: The Ministry of Trade, Industry & Energy is establishing a next-generation battery park by 2026 to facilitate local firms' research. A KRW 80 billion (US$62 million) fund, created jointly with top battery makers, supports R&D projects.
• USA: The United States is deeply invested in battery R&D. The Battery Materials Processing & Battery Manufacturing Recycling project (US$2.8 billion) supports domestic commercial-scale facilities for battery materials. The Battery & Critical Minerals Mining & Recycling Grant Program (US$125 million) promotes battery recycling R&D.