The strained relationship between the United States and China is opening new opportunities for India. Following Apple’s decision to make India the second-largest iPhone manufacturing hub, another significant shift is taking place. Lithium-ion cells, a critical component in consumer electronics, will now be sourced from India.
US based electronics company Anker has entered into an agreement with Chennai-based Munoth Group to source lithium-ion cells. This move comes in response to the Joe Biden administration’s decision to impose a 25 per cent duty on lithium cells imported from China starting in 2026.
Supply Chain Shift to Andhra Pradesh
Munoth’s state-of-the-art plant in Andhra Pradesh, with a capacity of 270 MWh, will supply one million lithium-ion cells per month to Anker. This arrangement is part of a six-month deal. The Munoth Group is also scaling up its production capacity and installing additional testing equipment, marking a significant milestone for India’s budding battery manufacturing industry.
Jaswant Munoth, Vice Chairman of Munoth Industries Limited, in an interview with The Economic Times said, “Our new battery production unit will supply one million lithium cells monthly to a major U.S. power bank brand. Previously, this customer relied on suppliers from China. This shift is a direct result of the U.S. imposing a 25% tariff on lithium cells imported from China for consumer electronics starting in 2026.”
Boost to domestic production
The supply from the Andhra Pradesh plant is expected to begin in the second quarter of 2025. Munoth emphasized that this order could inspire confidence among Indian brands to source batteries locally. Currently, the Andhra Pradesh facility produces 500,000 cells per month. However, following this agreement, the company plans to quintuple its capacity to two million cells per month.
India as an alternative to China
Jaswant Munoth pointed out that leading customers of China’s top lithium-ion cell suppliers are now turning to India to avoid the heavy tariffs imposed on Chinese imports. This development positions India as a strong alternative to China in the global battery supply chain.
With this, India is not only reducing its reliance on imports but also paving the way for growth in its battery manufacturing sector, catering to both domestic and international markets.
