Powering sustainability with battery recycle and reuse
Battery manufacturing and recycling will not only support India’s transition to a low-carbon economy but also drive economic growth by reducing dependence on imported raw materials, creating jobs, and fostering innovation
India stands at the threshold of a transformative era, where energy independence and sustainability are not just aspirations but achievable goals. As we accelerate toward a low-carbon future, our nation is making strategic strides to build a self-reliant manufacturing base, enhance export competitiveness, and address the pressing challenge of the climate crisis.
In this journey, critical minerals like lithium, copper, and cobalt are the backbone of emerging technologies such as electric vehicles (EVs), and key to reducing carbon emissions. Ensuring a sustainable supply chain for these is, therefore, vital. Our focus on recycling, innovation, and circular economy practices will not only reduce reliance on imports but also position India as a global leader in green technologies.
Exempting customs duty on 25 key minerals like lithium, copper, and cobalt will make these minerals more accessible in India, boosting local production and lowering costs. Critical raw materials make up 60% of the cost of manufacturing an EV battery and are found mainly in a few countries, which could lead to supply chain disruptions due to geopolitical issues. Therefore, we need a practical plan to create a sustainable and secure supply chain for lithium-ion batteries (LIBs), ensuring steady access to these materials while reducing our need for new mining.
The announcement of a Critical Mineral Mission for domestic production, recycling and overseas acquisition of critical mineral assets, is also a significant step towards promoting circularity and securing the supply chain. The mission will play a pivotal role in developing the entire supply chain of critical minerals, from production to recycling, while supporting research, innovation, technical expertise, workforce development, trade and market access, and enabling viable financing solutions.
Recycling old batteries can greatly reduce the need for new mining by 2040 — by 55% for copper, 25% for lithium, and 35% for cobalt and nickel. Adopting circular battery practices could also cut battery life cycle emissions by 7-17%. From 2022 to 2030, India can produce 120-180 GWh of used LIBs from energy storage and transport. Recycling these batteries can help India create a domestic supply chain, support the country’s 2070 net-zero goal, and ensure energy security.
India has already started taking measures towards effectively reducing battery waste and reusing, recycling and repurposing batteries. In 2022, India introduced the Battery Waste Management Rules (BWMR) to integrate recycling into the LIB supply chain. These rules include extended producer responsibility (EPR) that holds manufacturers and producers accountable for collecting used batteries.
Going forward, we need transparent recycling outputs and rigorous EPR enforcement. During its G20 presidency, India also initiated the Resource Efficiency and Circular Economy Industry Collaboration (RECEIC), to promote resource efficiency and circular economy practices. Additionally, the ministry of electronics and information technology has transferred a cost-effective LIB recycling technology to nine recycling industries and startups as part of Mission LiFE’s Promote Circularity Campaign.
While the pursuit to create a sustainable and circular battery ecosystem has been started, there is a long way to go. The budget this year significantly increased the allocations to the two Production-Linked Incentive (PLI) schemes for battery storage and automobile and auto components — making this an opportune time to promote the adoption of circularity-friendly design as demand soars. By 2030, India is expected to generate around 128 GWh of end-of-life LIB waste, with over 59 GWh from electric vehicles.
Establishing a robust domestic refining capacity can create a viable recycling market in India. By 2030, 54% of end-of-life batteries worldwide are expected to be recycled, meeting 7% of the material needed for LIB production. In India, this recycled material could produce 60 GWh of new battery cells.
Today, we stand at a critical juncture that will shape this rapidly evolving industry. Indian start-ups Attero, BatX, Lohum, EXIGO, and LICO Materials are already making significant strides in this field. It is time to take proactive steps towards accelerating and scaling up the creation of a circular battery value chain. We must establish clear criteria for retiring batteries and set comprehensive guidelines for post-retirement usage of batteries. While concerted efforts towards standardisation in manufacturing processes are critical, so are initiatives to integrate the informal sector into the mainstream. We must boost efficiency through source segregation while enforcing strict safety standards and forming cross-sectoral partnerships for battery reuse.
A timely effort here is the Battery360 Alliance — a platform to bring together industry, government, research organisations, and technical experts to create a sustainable and circular battery ecosystem in India. Such collaboration can help promote reuse, recycling, and repurposing by providing an integrated space for co-creating solutions.
Battery manufacturing and recycling will not only support India’s transition to a low-carbon economy but also drive economic growth by reducing dependence on imported raw materials, creating jobs, and fostering innovation. Establishing a robust battery industry will position India as a global leader in green technologies and contribute to energy security.
Amitabh Kant is India’s G20 Sherpa and former CEO, NITI Aayog,Madhav Pai is CEO, WRI India.The views expressed are personal