The global battery race is heating up, and it’s no longer just about scaling lithium-ion production. Companies worldwide are investing in alternative technologies — from sodium-ion to solid-state and advanced LFP chemistries — betting on the next big breakthrough. For India, these moves carry the promise of stronger energy security, local manufacturing, and new jobs, but success is far from guaranteed. With the market projected to quadruple by 2035, every acquisition, patent, and pilot project could redefine who leads the battery revolution. Batteries are becoming the most contested space of the 21st century. By 2024 and 2025, the conversation shifted from scaling lithium-ion output to securing the technologies that might one day replace or complement it. Companies are buying chemistry, buying know-how, and positioning themselves to capture value when the market tilts. In 2024, the global lithium-ion battery market was already worth more than US$ 100 billion. Analysts project it could cross US$ 400 billion by 2035, powered almost entirely by the rise of electric mobility. Cars are the biggest driver of this growth. Add to that the growth of renewable-heavy grids that depend on batteries to store solar and wind power, and the demand curve points only upward for decades to come. The challenge lies in the raw material. Lithium is scarce and its production is highly concentrated. More than 90% of global supply comes from just a handful of countries. Australia is the single largest producer, followed by Chile, China, and Argentina together they account for nearly all mined lithium. Processing and refining, however, is even more skewed. China controls well over 60% of global refining capacity, giving it outsized influence over pricing and supply chains. This combination — mining concentrated in the so-called “Lithium Triangle” of South America plus refining dominated by China which makes the market especially vulnerable to geopolitical risks and supply shocks. For India, which has committed to electrifying mobility and cutting fossil fuel imports, building an indigenous battery industry is a matter of economic and strategic necessity. Manufacturing advanced cells at home, whether lithium-based or alternatives like sodium-ion, means jobs, greater energy security, and insulation from global price shocks. It also fits squarely within the government’s Production Linked Incentive scheme, which is targeting 50 gigawatt-hours of advanced cell manufacturing capacity in the coming years. This is where early acquisitions and technology partnerships may make the difference. Owning intellectual property today allows companies to test new chemistries in pilot projects and to stay prepared if the global market tilts away from lithium. Scaling sodium-ion or any new chemistry will involve engineering, capital, and competition. Some technologies will thrive, others may stall. Yet the option to innovate and to hedge against future scarcity can be just as valuable as owning a factory floor.
Securing patents around emerging battery technology Several concrete deals underline how seriously Indian players are positioning themselves in the battery race. Reliance New Energy has already picked up UK-based Faradion, securing patents around sodium-ion technology, while also acquiring assets of Lithium Werks in the Netherlands to deepen its hold on LFP and lithium-ion manufacturing. Amara Raja has struck a licensing agreement with China’s Gotion to produce LFP cells in India, a move that ties domestic manufacturing to proven global expertise. Himadri has taken a stake in Australia’s Sicona to bring silicon-carbon anode technology into its portfolio, and Graphite India has bought into GODI India, gaining exposure to sodium-ion and solid-state R&D. Even the mobility-focused Yuma Energy has acquired Grinntech, expanding into advanced battery design and battery-as-a-service models. Why buyers move early: the strategic drivers There are four practical reasons companies and nations buy early rather than wait: 1. Intellectual property and a first-mover moat. Patents and proven cell designs confer bargaining power. When a novel chemistry reaches commercial scale, owners of the core IP control licensing, tooling, and often the initial pricing dynamics. 2. Gigafactory leverage and speed to market. New chemistries inserted directly into planned gigafactories shorten commercialization timelines and reduce per-unit costs as volume rises. Owning both the recipe and the factory is a powerful commercial advantage. 3. Portfolio hedging across chemistries. The battery future is unlikely to be mono-chemical. Firms that hold LFP, lithium-ion, solid-state, and sodium-ion assets can pivot to the technology that best fits each use case — from grid storage to two-wheelers to long-range EVs. 4. Energy security and policy fit. National strategies (Make-in-India, import substitution, securing strategic minerals) make local ownership attractive. Acquisitions align private returns with public goals: jobs, sovereign supply chains, and reduced import vulnerability. Alternative battery technologies and opportunities for India Sodium-ion batteries address two structural challenges of the lithium era: scarcity of raw materials and concentrated refining capacity. Using abundant materials like sodium and aluminium, they promise lower commodity costs, enhanced safety, and wide temperature tolerance, making them well-suited for grid storage, affordable EVs, and two-wheelers — key segments for energy access in emerging markets. However, sodium-ion currently has lower energy density than lithium, limiting its use in long-range premium EVs, and industrial scale-up remains complex, requiring proven cell engineering, electrode materials, and supply chains at gigawatt scale. Beyond sodium-ion, other alternative chemistries such as solid-state batteries, lithium iron phosphate (LFP), and silicon-anode cells are also gaining attention globally. Each offers different advantages: solid-state for higher energy density and safety, LFP for cost-effective large-scale storage, and silicon-anodes for improving lithium-based battery performance. For India, investing across this portfolio of emerging technologies could reduce dependence on imported materials, support domestic manufacturing, create skilled jobs, and ensure flexibility to pivot as global demand and technological breakthroughs evolve. That said, risks remain significant: scaling production, competing with established global players, and integrating new chemistries into existing supply chains will require careful strategy and phased execution, making a diversified approach more prudent than betting on a single solution. Will this move benefit India? Early acquisitions in emerging battery technologies highlight the strategic thinking behind securing intellectual property in alternate and emerging tech. A chemistry that could complement or even partially replace lithium-ion in certain applications. While the valuations in such deals may appear steep relative to the current revenue or scale of the target company, the rationale lies in future potential rather than immediate returns. Owning patents and know-how early allows companies to experiment with pilot production, integrate technologies into local manufacturing hubs, and establish a first-mover advantage in a field poised for explosive growth. At the same time, the high price tags underscore the inherent risk: not all emerging chemistries will scale as expected, and global competition is intense. Yet, for a country like India, encouraging domestic acquisition and development of such technologies could strengthen energy security, reduce import dependence, and create jobs, even as the commercial payoff remains uncertain. In other words, these moves represent calculated bets — the upside could be transformative, but execution, market adoption, and technological maturation will ultimately determine the outcome. FAQs 1. What are the most promising alternative battery technologies to lithium-ion? Alternative battery technologies gaining global attention include sodium-ion, solid-state batteries, lithium iron phosphate (LFP), and silicon-anode batteries. Each has unique advantages, from lower raw material costs to higher energy density, making them suitable for specific applications like grid storage, electric two-wheelers, or long-range EVs. 2. Why is India investing in domestic battery manufacturing? India is investing in domestic battery production to ensure energy security, reduce import dependence on lithium, support electric vehicle adoption, and create local jobs. Initiatives like the government’s Production Linked Incentive (PLI) scheme target 50 GWh of advanced cell manufacturing capacity in the coming years. 3. What are the risks of investing in emerging battery technologies? Emerging battery technologies carry multiple risks: scaling challenges, competition from global giants, integration into existing supply chains, and uncertainty about which chemistries will become commercially viable. Early investments are strategic bets rather than guaranteed commercial wins. 4. Is sodium-ion better than lithium-ion batteries? Sodium-ion batteries are cheaper, safer, and use more abundant materials like sodium and aluminum, making them ideal for grid storage and affordable EVs. However, they currently have lower energy density than lithium-ion, limiting their use in high-range premium EVs. They are expected to complement, not replace, lithium-ion in the near term. 5. What are some key battery tech acquisitions in India? India is actively securing emerging battery technologies through acquisitions and partnerships, including sodium-ion, LFP, and solid-state IP, to strengthen domestic manufacturing and innovation.