Your EV battery’s second act can power India’s future

As India’s electric vehicle revolution gains momentum, the country faces a critical challenge: building a circular ecosystem for electric vehicle (EV) batteries. With projections showing that by 2030, 128 gigawatt-hours’ worth of EV batteries will reach their end-of-life for primary automotive applications, the imperative to develop robust recycling and second-life infrastructure has never been more urgent.  

India’s electric mobility revolution is accelerating at a unprecedented pace, bringing with it both extraordinary opportunities and pressing challenges. By 2030, NITI Aayog projects India will generate 128 gigawatt-hours of recyclable batteries, with EVs comprising 46% of this volume. Yet today, most of our battery waste is exported as black mass for processing elsewhere—in just one year since October 2022, India exported black mass containing precious battery materials worth millions—haemorrhaging approximately 350 tonnes of cobalt, 71.7 tonnes of lithium, and 215 tonnes of nickel—representing billions in lost economic value and a missed opportunity for domestic industry development. This comes at a time when the global battery recycling market is poised to reach USD 95 billion annually by 2040.

The imperative for developing robust domestic recycling capabilities extends far beyond capturing market share. With global lithium reserves rapidly depleting and prices volatile, recycling isn’t just an environmental choice—it’s an economic necessity for India’s energy security. While the recent discovery of 5.9 million tonnes of domestic lithium reserves offers promise, the 8-10-year development timeline means India must act now to secure its battery material supply chain. Currently importing 100% of its lithium-ion battery needs, India faces significant economic and strategic vulnerabilities in its EV ambitions.

A robust domestic battery circular economy offers a powerful solution to these challenges. By developing advanced recycling capabilities, India can reduce its import dependencies, strengthen resource security, and create substantial value chains within its borders. The opportunity extends across the entire battery lifecycle—from collection and recycling to refurbishment and materials recovery—promising to generate thousands of skilled jobs while supporting India’s net-zero commitments. The question isn’t whether to develop these capabilities, but how quickly we can scale them to meet the incoming wave of end-of-life batteries.

Navigating complex challenges

The path to realising this opportunity is marked by significant challenges that demand immediate attention. Today, India’s recycling infrastructure remains notably underdeveloped, with current capacity standing at just 2 gigawatt-hours. Most recyclers produce only black mass for export—not only representing lost economic value but often employing sub-optimal recycling methods that fail to extract the full potential of these precious materials.

Technical challenges persist across the value chain, compounded by a critical knowledge gap in handling lithium-ion batteries. Many recyclers lack the expertise and technology to properly handle these complex energy storage systems, leading to inefficient recovery rates and potential safety hazards. The industry grapples with limited domestic capacity for advanced recycling processes and insufficient investment in research and development. Battery health diagnostic technologies, crucial for determining optimal end-of-life pathways, require further development.

While Battery Waste Management Rules exist with progressive EPR targets (according to the second amendment) starting from 2027-28, the absence of immediate compliance requirements has created a waiting game. Few players are making significant moves toward building a robust recycling infrastructure, despite the looming surge in end-of-life batteries. This regulatory timeline gap, combined with technical hurdles, is further complicated by market uncertainties around standards for recycled materials and second-life applications.

The infrastructure challenge extends beyond technology. The absence of robust collection networks and reverse logistics systems makes it difficult to aggregate end-of-life batteries efficiently. This challenge is exacerbated by the lack of standardised labelling systems and limited testing facilities for assessing battery health and potential second-life applications. Furthermore, the market for recycled materials remains underdeveloped, with many producers expressing scepticism about the quality and reliability of recycled materials—a concern that could be addressed through proper standards and quality control measures.

Emerging solutions and innovation

Despite these challenges, India’s battery recycling sector is showing promising signs of evolution. A new wave of innovation is taking shape across the ecosystem, with both established recyclers and start-ups driving technological advancement. Attero Recycling, India’s largest e-waste recycler, has pioneered advanced material recovery processes, while Lohum Cleantech is developing integrated solutions for both recycling and second-life applications. Established industrial leaders such as Tata Chemicals are making strategic investments in recycling infrastructure, while innovative start-ups such as ACE Green are advancing sophisticated hydrometallurgical processes for material recovery. Even in black mass processing—currently a major export—companies such as BatX Energies are developing domestic capabilities to keep value within India.

These innovators are also pioneering new business models that could accelerate the transition to circularity. Battery-as-a-service offerings are gaining traction, making it easier to track and manage batteries throughout their lifecycle. Companies are exploring refurbishment opportunities for energy storage applications, while others are developing specialised collection and aggregation services. These innovations suggest that the industry is beginning to recognise and respond to the circularity imperative, though much more rapid scaling is needed to meet the coming surge in end-of-life batteries.

Accelerating the transition

To move the needle on battery circularity, India can draw insights from global leaders who are already demonstrating the immense potential of battery recycling at scale. Companies such as Redwood Materials are setting new benchmarks, developing facilities capable of recycling over 100 GWh of batteries annually by 2025. Northvolt’s ambitious plans for recycling up to 125,000 tons of batteries annually demonstrate how manufacturers can integrate recycling into their core business model. These examples show that with the right technology investment and policy support, large-scale domestic recycling capabilities can be rapidly developed.

India needs similar coordinated action across multiple fronts, starting with the fundamentals. The first priority must be establishing robust collection networks with standardised protocols for battery handling, sorting, and transportation. Without this foundation, even the most advanced recycling technologies will struggle to achieve scale and efficiency.

Building on this foundation, the industry must invest in advanced recycling technologies that go beyond basic material recovery. Companies such as Li-Cycle and Ascend Elements have demonstrated the viability of sophisticated hydrometallurgical processes that maximise material recovery while minimising environmental impact. The established Battery Waste Management Rules provide a regulatory framework, but the industry needs to move faster than the compliance timeline demands. Early movers who invest in sophisticated recycling capabilities will be better positioned to capture value as the market matures. 

Traceability is another critical element—implementing standardised labelling and tracking mechanisms is essential. These systems need to capture crucial data about battery composition, usage history, and health status—information that directly impacts recycling efficiency and potential second-life applications. 

Ecosystem development demands particular attention to testing and validation infrastructure. Different battery chemistries and conditions require different end-of-life pathways—what works for a lightly used EV battery might not be appropriate for one from a heavy commercial vehicle. India needs a network of accredited testing facilities capable of assessing battery health and determining optimal secondary applications, whether that’s stationary energy storage, less demanding mobility applications, or material recovery.

Quality standards for recycled materials would be crucial in building market confidence. The industry needs clear benchmarks for recycled materials, supported by reliable testing and certification processes. This goes hand in hand with developing platforms for material trading, creating transparent marketplaces where recyclers and manufacturers can trade with confidence in material quality and provenance.

Perhaps most importantly, the industry needs to invest in developing a skilled workforce. Battery recycling and refurbishment require specialised expertise in chemistry, materials science, and safety protocols. Training programmes need to be established across the value chain—from collection and transportation to testing, recycling, and refurbishment operations. This workforce development will not only support the circular economy but also create high-value employment opportunities across the sector.

The path forward

The stakes for establishing a circular battery economy in India extend far beyond waste management. Failing to act decisively now could lock India into a pattern of perpetual dependence on battery material imports, compromising our energy security and economic sovereignty. Every year of delayed action means more valuable materials lost through exports, more missed opportunities for domestic value creation, and a widening gap between India and global leaders in battery technology.

Success demands a coordinated ecosystem response. Industry leaders must move beyond wait-and-watch approaches to actively pilot recycling technologies and establish take-back programmes – even before regulatory deadlines kick in. Research institutions need to accelerate their work on battery testing protocols, recycling efficiency, and materials recovery, creating a knowledge base that supports industrial scale-up. Policy-makers must ensure that incentives for domestic recycling infrastructure are matched with strong disincentives for black mass exports. The technology exists, the economic imperative is clear, and the environmental stakes are high. India cannot afford to let this opportunity slip through regulatory gaps or fragmented efforts. The time for coordinated, ecosystem-wide action is now.

If you would like to get in touch about any of the points raised in this piece, or discuss how Xynteo can help your organisation, contact Vipul or Kemaya below.

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