Circular EV economy: Turning battery waste into wealth

Time of India

4 hours ago

India's Electric Vehicle (EV) market has entered the fast lane, with a 20 per cent increase in sales in the past year. Projected to reach $113.99 billion by 2029, India's EV market is poised to lead the global EV revolution, with nearly 2 million EVs sold across the country in 2024.
This surge can be attributed to multiple factors, including robust government support through incentives and subsidies, better EV infrastructure, and a growing market for cleaner,
sustainable mobility solutions
. Purchasing an EV offers numerous advantages, like lower running costs, relatively easier maintenance, potential tax benefits, and reduced emissions and pollution. However, have you ever wondered about the heart, i.e., the battery of an EV?
The EV battery
India's EV battery market is experiencing an upswing, projected to grow from $16.77 billion in 2023 to $27.70 billion by 2028. This indicates the country's ambitious plans for electrification, but it also implies a corresponding surge in the volume of used batteries in the future. While the end product is a more sustainable alternative compared to a vehicle running on fossil fuels, the process of extracting lithium can be resource-intensive and pose environmental risks. However, the million-dollar question now is, what happens to the batteries after their life cycle?
The afterlife
Most EVs today are sold with an 8-10-year warranty on their batteries. Once the battery's performance drops below 70-80 per cent of its original capacity, it's no longer suitable for use. But, this doesn't mean that it is the end.
EV batteries can be repurposed for multiple secondary uses, including energy storage for solar power systems, grid stabilisation, or even backup power solutions. This second lease of life can extend their utility for several more years before they truly become unusable. However, without structured recycling infrastructure and waste management, batteries can end up in landfills, with toxic waste leeching into the soil and water.
EV Waste in India: The current scenario
As per recent government data, recyclers in India have collected over 2,750 metric tonnes of lithium-ion waste batteries from EVs in three years. This number is expected to rise exponentially, with the first major wave of decommissioned EV batteries projected to emerge between 2026 and 2030.
Given the hazardous nature of battery components, improper disposal can pose serious environmental and health risks. The lack of comprehensive recycling mechanisms further exacerbates the challenge, making sustainable innovation non-negotiable. That said, it's essential to understand where India stands on being prepared to deal with EV battery waste.
India's regulatory and recycling infrastructure
India introduced the
Battery Waste Management
Rules 2022, which make Extended Producer Responsibility (EPR) mandatory for all EV and EV battery manufacturers. This makes producers accountable for the collection, repurposing, and recycling of EV batteries when they near the end of their lifetimes, marking a significant policy shift towards a circular economy.
Indian companies like Attero, Lohum, and Metastable Materials are also developing proprietary recycling technologies capable of recovering up to 95 per cent 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.
However, India's current recycling capacity requires a rapid, efficient scale-up across states. Fortunately, automotive OEMs are stepping in, taking accountability for the EV batteries they produce.
The OEM response
Automotive players, including Tata Motors, Mahindra Electric, Ola Electric, Hyundai, and MG Motor, are partnering with recyclers to establish battery take-back programs and reverse logistics chains.
Several companies are also exploring battery second-life applications in energy storage, rural electrification, and telecom backup, particularly for batteries that still retain 60–70 per cent of their original capacity after vehicle use. OEMs are implementing battery management systems with tracking capabilities to ensure traceability across the battery lifecycle, which is critical for EPR compliance and resale.
While these efforts are still in the nascent stages, the industry is gradually integrating circularity into product design, supply chains, and post-use strategy.
Towards better sustainability
The EV ecosystem must go beyond compliance and embrace circular innovation through standardisation and increased investments in domestic recycling. Further, India must integrate recycling education into EV workforce training and expand incentives for start-ups building sustainable battery solutions.
India has a critical window of opportunity to create a circular economy framework around EV batteries before the waste becomes unmanageable. Building robust ecosystems for battery reuse, repurposing, and recycling can transform end-of-life batteries from an environmental liability into an economic asset.
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
.