Nikhil Kamath recently analyzed India's energy transition, exploring whether to focus on EV manufacturing or battery production. The discussion emphasized the potential of sodium-ion batteries to lower costs and improve safety for the country's two- and three-wheeler markets, while addressing lithium-ion risks.
Zerodha co-founder Nikhil Kamath recently sparked a discussion on India's energy transition, challenging the conventional focus on electric vehicle (EV) manufacturing. In an industry-focused dialogue, Kamath engaged with global battery experts, exploring whether India should aim to build EV brands or concentrate on the battery supply chain. The consensus from the conversation suggests a strategic pivot toward manufacturing battery alternatives to reduce dependency on imported lithium and rare earth materials.
One of the primary concerns raised during the discussion was the safety record of existing lithium-iron-phosphate (LFP) batteries. While these are common in major global EV markets, Henning Rath, CEO of EnerVenue, and Kun Tang, Executive Chairman of HiNa Battery, highlighted significant safety issues. They pointed to the phenomenon of thermal runaway, with global data citing over 14,000 LFP battery fires in 2025. The experts suggested that manufacturing quality, especially from smaller suppliers, remains a critical safety factor.
The conversation shifted to sodium-ion technology as a potential alternative for the Indian market. HiNa Battery’s Kun Tang noted that sodium-ion batteries could be produced at roughly one-tenth the cost of lithium-ion options. Because they utilize more easily available materials like sodium, iron, and phosphate, this technology could help India bypass some of the supply chain bottlenecks associated with lithium.
For the Indian market, the expert analysis highlighted a distinct potential fit. While sodium-ion batteries currently have lower energy density—making them less ideal for long-range, premium electric cars—they show promise for India’s massive two- and three-wheeler segments. These vehicles typically require shorter ranges, making the safety and cost benefits of sodium-ion technology highly relevant to local needs.
The discussion also touched on nickel-based technology. Henning Rath introduced EnerVenue’s approach, which adapts systems originally developed by NASA. These batteries use water-based electrolytes to minimize fire risks and are designed for a high number of charge cycles. However, this technology is currently optimized for stationary energy storage—such as grid management—rather than for powering vehicles.
Investors tracking the energy transition space may monitor how these technologies move from research labs to commercial use. While solid-state batteries are often discussed as the future of EV power, the experts viewed their commercial readiness as still in the early stages. The primary takeaway for India is the need for a diversified battery chemistry strategy, balancing safety, cost, and the specific energy requirements of local transport needs. Future market progress will likely depend on the scaling of these manufacturing processes and the ability of domestic players to build robust supply chains.