Kolkata: The demand for batteries is expected to increase manifold in the coming years. The tailwinds for this sector are provided by the boom in electric vehicles, energy storage and renewable energy sectors in the country.
Industry estimates show that by 2032 the demand for batteries in the country can reach up to 700%. Companies that are rapidly investing in battery materials, lithium-ion cells and energy storage value chains can benefit from this growing demand. In this case, the eyes of investors are on some selected stocks. Let’s have a look.
Exide Industries
Market price: Rs 422.05
Exide Industries is among the country’s largest battery companies. The company has a strong presence in the automotive and industrial battery business. Now the company is also working rapidly on lithium ion cell manufacturing. Investment is being made on the gigafactory project in Gujarat, from which the company can get a big advantage in the EV battery market in the future. Strong brand and wide distribution network are considered its major strengths.
Amara Raja Energy & Mobility
Market price: Rs 861.95
Amara Raja Energy and Mobility is also investing in the lithium ion battery business beyond traditional lead acid batteries. The company is developing the GigaCorridor in Telangana, where it will produce battery cells and battery packs. With this, the company is preparing to meet the increasing demand of energy storage system and EV sector. In the coming years, this expansion can give a new direction to the company’s growth.
Uno Minda
Market price: Rs 1,165.00
Auto component maker Uno Minda is also strengthening its presence in the EV ecosystem. The company is working on many products related to battery management system, battery pack and EV. The company can benefit from the rapidly increasing demand in the electric two-wheeler and four-wheeler market. Partnership with many global companies is also helping in its growth.
The government’s PLI scheme, emphasis on EV adoption and plans to increase renewable energy capacity are providing long-term support to the battery sector. The increasing need for energy storage systems is creating a big market for battery manufacturing companies. This is the reason why analysts believe that companies with strong business related to this theme can perform better in the coming years.