Importance of a circular economy in driving sustainability
On this World Environment Week, it is crucial to understand that without a circular approach, we are risking replacing one form of ecological degradation with another. From an auto industry standpoint, investing in creation of second life use cases for batteries, in the form of energy storage systems for stationary applications, will certainly drive more sustainability. Customer interest in electric vehicles (EVs) is steadily rising in India, backed by new launches by mass carmakers and the expansion of the charging infrastructure. While a focussed approach is driving EV sales in India, the next imperative task at hand for the sector is to collectively create an ecosystem for battery life management.
EV batteries consist rare earth elements, such as lithium, and cobalt, which are finite. Repurposing helps mitigate these risks by enabling the recovery of valuable raw materials, minimising reliance on virgin mining, and providing cost-efficient stability. The repurposing process of EV batteries have evolved significantly since inception. Pre-2020, most used batteries were discarded or exported for recycling. The next phase witnessed the introduction of Battery Waste Management Rules and saw the emergence of many start-ups in this domain. Currently, second-life batteries are now a formal part of India's clean energy and mobility strategy.
Estimates suggest that by 2030, India is expected to generate 128 GWh of recyclable battery waste. This highlights the importance of battery recycling in crafting a sustainable tomorrow. Efficient recycling methods can recover 70-80% of the battery's capacity even after their use in vehicles, allowing them to be repurposed for different storage solutions such as grid stabilisation, industrial backup, and residential energy systems. Recycled materials can lower costs by 30-50% compared to newly-mined resources, making this strategic shift a significant competitive advantage for India in the global battery supply chain.
Now, imagine the immense opportunity for original equipment manufacturers (OEMs) to create an alternative revenue stream by repurposing batteries. Furthermore, it won't be wrong to predict a new wave of start-ups in the recycling business, collaborating with OEMs, to present innovative ideas with battery recycling. For automakers, this transition is not just beneficial but essential. Moving beyond manufacturing and embracing sustainable battery lifecycle management will be key to long-term success. Additionally, the revenue-generation potential in this space is immense—leasing models, refurbishment programs, and Battery-as-a-Service (BaaS) are just a few innovative ways to open new income models. In addition, government incentives for second-life applications will further encourage the adoption of these practices across industries.
That said, to realise the full potential of a circular economy in India, a collaborative approach needs to be implemented in creating a robust waste management infrastructure that seamlessly enables collection, sorting, and processing. Second, businesses should adopt circular supply chains and product life extension strategies. Next, consumer awareness on effective waste management needs to be ramped up. In addition, recycling technologies constantly need to evolve for scaling up operations and handling complex waste materials. Most importantly, a conducive policy and regulatory framework is needed to incentivise circular economy practices and discourage linear approaches.
I am confident that India's mission to becoming a $ 5 trillion economy will be largely driven by sustainability in every aspect. Redefining the automotive industry's role in energy management can position India as a global leader in energy storage solutions. We are already in the future of mobility—the only way forward is to keep innovating while ensuring circular practices remain at the core.
This article is authored by Anurag Mehrotra, managing director, JSW MG Motor India.
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The Hindu
04-08-2025
- The Hindu
The missing link in India's battery waste management
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Recognising these risks, the government notified the Battery Waste Management Rules (BWMR) in 2022 to ensure sustainable management and recycling. The first problem is the floor price A cornerstone of the rules is the Extended Producer Responsibility (EPR), which compels producers to fund battery collection and recycling, and aims to close the loop in the battery value chain. Producers rely on recyclers to meet their recycling targets since they do not possess the logistics and the infrastructure for the collection of battery waste. In practice, recyclers must receive a minimum price, known as the EPR floor price, in exchange for EPR certificates that attest that producers have met their recycling obligations. The EPR floor price ensures that recyclers are adequately compensated for their upfront investment in infrastructure, research and development, labour, technology and recycling methods. Unfortunately, there are certain hurdles, the first being the EPR floor price being too low to sustain the robust recycling of battery waste generated by producers. Proper disposal of lithium battery waste is expensive, requiring advanced processing technologies, safe transportation, and skilled labour to prevent hazardous materials from leaching into ecosystems. Lithium-ion batteries also have valuable and rare minerals such as cobalt, lithium and nickel, whose efficient recovery can significantly reduce India's import dependence. In case, the EPR floor price does not adequately cover proper recycling costs, it becomes economically unviable for legitimate recyclers to operate sustainably. As a result, informal and fraudulent recyclers tend to flourish, creating market distortions and perverse incentives for producers. They often issue false recycling certificates or dump hazardous waste — a failure previously witnessed in India's plastic waste management sector. If left unchecked, such practices may undermine India's circular economy ambitions. Without fair EPR floor pricing, India faces severe environmental degradation from improper battery recycling or dumping. The financial repercussions are equally alarming. Experts estimate that by 2030, inadequate battery recycling could cost India over $1 billion in foreign exchange losses. A resistance to compliance Large consumer electronics and manufacturers have further complicated the issue by resisting compliance. Large producers' policies are different for developed and developing countries, allowing corporations to circumvent environmental responsibilities in developing markets. This trend risks undermining the establishment of resilient and sustainable battery ecosystems across the global south. Interestingly, adjusting the EPR floor price should not increase costs for consumers. While global metal prices have declined over the past two years, manufacturers have not passed on these savings to consumers, indicating that Original Equipment Manufacturers can absorb higher recycling costs without raising prices. A fair EPR floor price will ensure sustainable recycling without burdening end users, while fostering a circular economy that benefits industry and consumers. To protect legitimate recyclers and encourage compliance, India must consider adopting a fair and globally comparable EPR floor price that reflects the real costs of recycling and industry building, and which can ease to market-driven prices when the ecosystem is mature and standardisation is in place. This requires immediate constructive dialogue among policymakers, industry and recyclers to establish a viable pricing structure after analysing global pricing structures and best practices. For instance, the United Kingdom requires producers to pay close to ₹600 per kilogram for EV battery recycling, whereas what is under consideration for India is less than a fourth of that. This is a significant difference even after adjusting for purchasing power between India and the U.K. The EPR floor price for recycling battery waste should cover the full spectrum of recycling expenses, from collection to material recovery, ensuring that recyclers can operate sustainably without resorting to shortcuts. A fair EPR regime will also incentivise battery producers to hold recyclers accountable through audits. Integrate informal recyclers Enforcement mechanisms need urgent strengthening in India. This includes implementing robust audit systems, digitising the issuance and the tracking of EPR certificates, and imposing stringent penalties for fraud and non-compliance. Additionally, integrating informal recyclers into the formal sector through training and regulatory support can help eliminate hazardous practices while expanding India's recycling capacity. This is not just an environmental challenge. It is an economic and strategic imperative. By recalibrating the EPR floor price, strengthening enforcement, and formalising the informal sector, we can transform battery waste from a looming crisis into a catalyst for green growth and a truly circular economy. Arun Goyal is a retired IAS officer. He is a former Secretary to the Government of India and a former Member of the Central Electricity Regulatory Commission
Time of India
16-07-2025
- Time of India
EV battery outlook: Lithium-ion demand set to jump 48% by 2030, says ICEA report; Import reliance and EoL waste pose key challenges
The lithium-ion battery (LiB) market in India is projected to grow sharply over the next five years, led by rising demand from electric vehicles, consumer electronics, and stationary storage applications, according to a joint report released by the India Cellular and Electronics Association (ICEA) and Accenture. The report estimates that total LiB demand will reach 115 GWh by 2030, with electric vehicle-linked usage expected to grow at a compound annual growth rate (CAGR) of 48per cent. In comparison, demand from stationary storage is projected to grow at 14per cent CAGR and from consumer electronics at 3per cent, ANI reported. The surge in demand comes amid India's broader push towards its Net Zero targets and the government's supportive policies on clean energy adoption, domestic cell manufacturing, and battery end-of-life (EoL) management. However, the report also highlights structural challenges related to import dependence and environmental risks. Imports rise as local capacity lags 'India currently lacks Li-ion cell pack manufacturing capabilities and mining infrastructure, making it heavily reliant on imports of LiBs consisting of critical battery-active materials such as lithium, cobalt, nickel, and manganese,' the report noted. ICEA and Accenture estimate that cumulative demand for these critical materials will exceed 250 kilo tonnes between 2024 and 2030, translating to an import exposure of over $5 billion. To address these risks, the government has launched initiatives including the Critical Minerals Mission and exemptions on trade duties for key minerals. The report also references the Battery Waste Management Rules (BWMR), introduced by the Central Pollution Control Board (CPCB) in 2022, which mandate responsible disposal and recycling of used batteries. Collection remains low despite rules Despite the regulatory push, about 39per cent of end-of-life consumer electronics batteries are not being collected, the report observed. India's goals under its COP26 'Panchamrit' pledge include achieving 500 GW of non-fossil electricity capacity and cutting emissions by 1 billion tonnes by 2030. It also plans to reduce GDP emissions intensity by 45per cent and achieve net-zero carbon emissions by 2070. According to the report, India's ability to meet these targets hinges partly on its capacity to scale Li-ion battery production while managing the supply chain and environmental footprint.
India Gazette
09-07-2025
- India Gazette
EVs to drive lithium-ion battery demand growth by remarkable 48% CAGR through 2030: Report
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