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At least 59 electric vehicle (EV) makers that use lithium-ion batteries like MG Motor, Ola Electric, Ather Energy, Tata Motors, and Mahindra & Mahindra have registered for recycling battery waste on an online portal operationalised by India’s apex pollution control authority earlier this year.
Producers registering on the portal are granted a five-year certificate as part of a mandated process to facilitate the proper management of battery waste. Other big manufacturers to register on the platform include producers of hybrid electric vehicles like Toyota Kirloskar and players such as Yamaha Motor, which is planning to launch EVs, alongside 16 recyclers, including lithium-ion recyclers like NCR-based BATX Energies and Prithvi Cleantech, and Mumbai-based LICO.
As per Battery Waste Management Rules (BWMR) 2022, producers of batteries containing lithium, nickel, cobalt, and lead must ensure environmentally sound management of waste batteries produced by them in the form of Extended Producer Responsibility (EPR) compliance.
EPR compliance is based on the polluter pays principle which puts the onus of management of waste generated by used products on the producer.
The European Union also requires producers in member countries to collect battery waste and recover a minimum of 50 per cent lithium from end-of-life batteries by 2027, in its efforts to promote a circular economy. In India too, EPR compliance has been mandatory for the recycling of plastic packaging waste.
BWMR allows producers to either recycle battery waste themselves or provide it to recyclers registered with relevant state pollution control boards in exchange for EPR certificates.
Given that EV batteries can account for up to 40 per cent of the total cost of manufacturing an EV, recovery of rare earth metals like lithium from used batteries can significantly drive down costs. Furthermore, efficient recycling of battery waste can also reduce the domestic industry’s reliance on rare metals imports. These outcomes are contingent upon a minimum purity standard of 99.5 per cent for recovered lithium, a threshold the domestic recycling industry cannot yet meet.
Both producers and recyclers of lithium-ion batteries are required to use the online EPR portal, which was launched in March by the Central Pollution Control Board (CPCB), to routinely declare the quantity of waste battery recycled and materials recovered. Currently, registration certificates have been issued to 1,225 producers for a five-year period, with 215 applications in process.
Industry sources confirmed that the registration of recyclers on CPCB’s EPR portal for battery waste management is still in the testing phase as the board continues to collate stakeholder feedback on portal-related processes.
The portal is expected to become fully operational in the coming weeks to allow recyclers to report sales and recycling data and to issue EPR certificates. Missing from the list of 16 recyclers that have applied to register is Noida-based LOHUM, which recently partnered with MG Motor for second-life EV battery solutions. Roorkee-based Attero, with at least 26 global patents on lithium-ion battery recycling technologies, has also not sent in the application yet as per information available on the portal.
With the introduction of EPR for battery waste management, Utkarsh Singh, CEO of BATX Energies, is confident that the battery waste recycling industry will grow in size and capabilities in the coming years. “While top three or four EV companies can recycle battery waste themselves, others will definitely partner with recyclers to comply with EPR norms. It is likely that some may even acquire recycling companies,” he said.
Singh added that original equipment manufacturers like EV makers will also have to develop efficient battery buy-back mechanisms to meet EPR targets.
BWMR leaves it up to the producer to decide how EPR compliance may be fulfilled, stating that producers “may operate schemes such as deposit refund system or buy back or any other model”.
Spokespersons from MG Motor and Ola Electric did not comment on the issue.
BWMR outlines the responsibility of consumers by recommending that they discard waste batteries separately from domestic waste by handing them over to an entity engaged in battery waste collection or recycling. Currently, battery waste is largely collected by the unorganised sector and it is hoped that BWMR will formalise the collection process by directly linking consumers, producers, and recyclers.
EPR compliance for EV batteries is set to roll out in phases, beginning with the recycling of a minimum of 70 per cent of e-rickshaw batteries placed in the market in 2021-22 from 2024-25 onwards.
In 2021-22, over 1.7 lakh electric three-wheelers were sold. For electric two-wheelers compliance begins in 2026-27 and for electric four-wheelers in 2029-30. The compliance timeline has been set keeping in mind the warranty provided on EV batteries. For two- and three-wheelers, EV batteries have a warranty of three years, whereas for four-wheelers it is eight years. The timeline also accounts for the infrastructure and financing needs of the recycling industry, said a source involved in policymaking.
In a report on India’s battery recycling ecosystem, GIZ and NITI Aayog recommend policymakers introduce incentives and subsidies to promote battery waste recycling at the state level. They suggest the drafting of rules and regulations which “could include offering recyclers rebates per kg to collect, sort and process end-of-life batteries”. The report also mentions the Australian government’s Battery Stewardship Scheme for the recycling of hand-held batteries as an industry benchmark.
NITI Aayog expects 128 GWh of lithium-ion batteries to be recycled by 2030, with 46 per cent coming from the EV sector.
