India’s electric vehicle (EV) market is experiencing rapid growth, with sales increasing by 20% over the past year and projections estimating the market will reach $113.99 billion by 2029. This surge is driven by government incentives, improved infrastructure, and a growing demand for sustainable mobility solutions. However, as the number of EVs on the road increases, so does the challenge of managing the lifecycle of their batteries.
The Battery Waste Management Rules 2022 have been introduced to address this issue. These rules mandate that producers (including importers) of batteries are responsible for the collection and recycling or refurbishment of waste batteries and the use of recovered materials from waste into new batteries. The rules prohibit the disposal of waste batteries in landfills and incineration, promoting a circular economy approach. Under these rules, the recovery targets for electric vehicle batteries are set at 70% for 2024-25, 80% for 2025-26, and 90% for 2026-27 and onwards. Recycling EV batteries is not only an environmental imperative but also an economic opportunity. Companies like Attero, Lohum, and Metastable Materials are developing proprietary recycling technologies capable of recovering up to 95% of valuable metals such as lithium, cobalt, and nickel from used batteries. These materials can be reintroduced into the manufacturing process, reducing reliance on imports and lowering environmental impact. For instance, Attero plans to expand its capacity from 4,000 tonnes per annum (TPA) to 19,500 TPA with an additional processing plant in Telangana.
In addition to recycling, second-life applications of EV batteries are gaining traction. Batteries that are no longer suitable for vehicle use but still retain 60-70% of their original capacity can be repurposed for energy storage in solar power systems, grid stabilization, or backup power solutions. This approach extends the utility of the batteries and contributes to a more sustainable energy ecosystem. Automotive original equipment manufacturers (OEMs) are also taking proactive steps in battery management. Companies like Tata Motors, Mahindra Electric, Ola Electric, Hyundai, and MG Motor are partnering with recyclers to establish battery take-back programs and reverse logistics chains. These collaborations ensure that batteries are properly collected, recycled, or refurbished at the end of their life cycle, aligning with the Extended Producer Responsibility (EPR) framework.
Despite these advancements, challenges remain. The recycling industry requires significant investment in infrastructure and technology to handle the increasing volume of used batteries. Establishing efficient logistics for battery collection and developing a skilled workforce for recycling operations are critical to scaling up efforts. Additionally, integrating recycling education into EV workforce training and expanding incentives for start-ups building sustainable battery solutions are essential for fostering innovation and growth in the sector. India has a critical window of opportunity to create a circular economy framework around EV batteries before the waste becomes unmanageable. By building robust ecosystems for battery reuse, repurposing, and recycling, the country can transform end-of-life batteries from an environmental liability into an economic asset. This approach not only supports the nation’s energy transition but also contributes to job creation and environmental sustainability.
The future of mobility must be green, not just on the road but even after the battery is recharged for the final drive. Managing an EV battery’s afterlife effectively is key to ensuring that India’s energy transition is sustainable and secure. With responsible management, we can turn battery waste into wealth, building a truly circular EV economy.
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