India's Lithium Hydroxide Market Case Study (2023

Case Study: Tata Chemicals and India’s Push for Lithium Hydroxide Localization (2023–2025)

Lithium hydroxide monohydrate (LiOH·H₂O) is a key input in high-energy-density lithium-ion batteries, especially for EVs using nickel-manganese-cobalt (NMC) cathodes.
India’s electric vehicle (EV) adoption rate is accelerating due to favorable FAME II subsidies, PLI schemes, and state-level EV policies.
As of 2023, India was 100% import-dependent for lithium compounds, especially from China and Chile, creating strategic vulnerability in the battery value chain.

Company: Tata Chemicals Ltd., part of the $300B Tata Group.
Vision: To become a domestic leader in battery-grade lithium derivatives and reduce India’s dependency on imported compounds.

Tata Chemicals launched an in-house R&D program to explore lithium hydroxide extraction from imported spodumene (hard rock lithium ore).
Collaboration initiated with CSIR–CECRI (Central Electrochemical Research Institute) to develop scalable processes for lithium hydroxide monohydrate production.
Early-stage investments were focused on modifying its Mithapur facility (Gujarat) for pilot operations.

A pilot project was announced in Q1 2024, targeting a 1,000–2,000 metric tonnes/year capacity.
Tata Chemicals entered discussions with Tata Motors and Mahindra Electric for joint testing and supply validation of India-made lithium hydroxide for their battery packs.
Feasibility studies considered the possibility of refining lithium from recycled battery black mass, offering a secondary supply pathway.

Feb 2023: Geological Survey of India discovered 5.9 million tonnes of inferred lithium reserves in Reasi, Jammu & Kashmir.
2024: The Indian government began auctioning lithium blocks, aiming to attract private investment and global technology partnerships.
PLI Scheme for ACC Batteries (₹18,000 Cr): Created incentives for firms setting up cell manufacturing & precursor material plants, including lithium hydroxide.

As of mid-2025:
- Tata Chemicals’ pilot plant is under commissioning, with commercial output expected by early 2026.
- The firm is engaged in talks with foreign lithium miners (especially in Australia) for consistent spodumene concentrate supply.
- R&D continues on direct lithium extraction (DLE) and alternative refining methods to improve yields and reduce environmental impact.
- Tata Chemicals is also considering setting up a full-scale 10,000+ TPA lithium hydroxide plant based on pilot results.

This initiative strengthens India’s battery raw material security and supports its EV and energy storage ambitions.
By localizing part of the lithium supply chain, Tata Chemicals aims to:
- Lower costs for domestic battery manufacturers.
- Position itself as a key supplier in the ASEAN lithium supply ecosystem.
- Reduce India’s strategic dependence on China for critical materials.