There’s an untapped economic opportunity in recycling the end-of-life lithium-ion batteries (LiB) in India. A recent report by the India Cellular and Electronics Association (ICEA), prepared in collaboration with Accenture, titled "Charging Ahead – Transforming India's Lithium-Ion Battery Recycling Ecosystem", highlights that India has the potential for a $3.5 billion domestic circular battery economy by 2030, meeting the needs of the growing electric vehicle and energy storage markets. This will only be possible if recycling of LiB batteries is taken seriously, with a focus on improving battery recycling infrastructure and practices.

But the current situation is far from ideal – the report shows that only 1% of LiBs are recycled into usable materials in the country. This, however, highlights the latent potential that can be tapped with the right policy intervention and investments for better infrastructure. Talking about the potential, Pankaj Mohindroo, Chairman of ICEA, said, “Sustainability is one of the most promising economic opportunities of our time. Battery recycling sits at the intersection of India’s environmental priorities and its strategic autonomy in critical minerals. With the right policy support and entrepreneurial energy, India can unlock a $3.5 billion opportunity, reduce imports, and establish itself as a global powerhouse in clean technologies.” The estimates show that even without any impetus, current plans for expanding lithium battery recycling can generate revenue in the range of $500 million to $1,000 million between 2025 and 2030.

This is significant considering India’s growing demand for electric vehicles, where lithium is a critical mineral. According to the report, India’s demand for LiB batteries is projected to reach 115 gigawatt-hours by 2030, driven by the growth of electric vehicles (EVs), stationary storage systems, and consumer electronics. Despite the urgent need, the study found that recycled supply from existing operations is just 1–3 kilotons, compared to a projected requirement of 3–15 kilotons by 2030. 

Recommendations for enhanced LiB recycling

Dr Sandip Chatterjee, global recycling expert and Senior Advisor SERI, said, “As India advances towards its $10 trillion digital economy vision, lithium-ion battery recycling is central to ensuring sustainability and material security. This report highlights the need for design for recyclability, modular standards, and strong collection systems aligned with global best practices. The ICEA report outlines four strategic recommendations that can boost battery recycling and improve critical mineral extraction. The recommendations would require a coordinated policy intervention and industry participation. 

VP Yadav, Scientist and Division Head at CPCB, said that this report marks an important step in strengthening India’s lithium-ion battery recycling framework. “With the battery waste management rules in place since 2022, CPCB is focused on effective EPR implementation, compliance, and traceability. The report’s insights will support our efforts in building infrastructure, guiding stakeholders, and ensuring environmentally sound recycling across the value chain,” he added. The Bureau of Waste Management Rules (BWMR) estimates recycling demand could reach 200–250 kT by the end of the decade. 

To unlock the potential, policymakers need to incentivize battery manufacturing and recycling. They should look at building hydrometallurgical recycling capabilities. Policies should reform trade regulations to facilitate the movement of battery scrap and recycled materials. It further endorses imposing restrictions on black mass exports. The industry should also look at revamping reverse logistics infrastructure to enable efficient collection and traceability, the report states. 

Sunita Verma from the Ministry of Electronics and Information Technology (MeitY) said that the report highlighted key requisites for India’s electronics and energy transition. “The Centre of Excellence at C-MET Hyderabad is already working with over 25 industries in lithium-ion battery recycling. The report will support India’s national goals of material self-reliance, reduced import dependency, and environmental sustainability,” she explained. 

Impact of the recommendations

If the key recommendations given in the ICEA report are implemented, then the recycling sector stands to gain tremendously. It will help create up to 41,000 green jobs across the value chain by 2030. In terms of positive impact on the environment, this will allow cutting 75,000 tonnes of CO₂ emissions annually, equivalent to removing 60,000 vehicles from roads and conserve 5.7 billion gallons of water per year – enough to meet the annual needs of a city of 500,000 people. 

According to Youthika Puri, Scientist and Division Head at CPCB, rapid Li-Ion adoption must be matched by an agile recycling ecosystem and prioritising critical mineral recovery and domestic black-mass processing. This can help in cutting import dependence and building resilience. “The battery waste management rules provide the framework, but we need a strong infrastructure, a rigorous EPR, efficient take-back channel and a mindset shift across all stakeholders. This report points us firmly in that direction,” she explained.