India Battery Recycling Market

India Battery Recycling Market Analysis

The India Battery Recycling Market size is estimated at USD 152.68 million in 2025, and is expected to reach USD 235.57 million by 2030, at a CAGR of 9.06% during the forecast period (2025-2030).

• The India Battery Recycling Market is set for substantial growth, fueled by the rising adoption of electric vehicles (EVs) and the imperative for sustainable waste management. By 2030, projections suggest that effective recycling processes, encompassing hydrometallurgical and pyrometallurgical methods, could recover approximately 90% of materials from retired lithium-ion batteries (LiBs). The government is championing a circular economy for batteries, urging industries to incorporate recycled materials into new battery production.
• This initiative not only aims to curtail import dependency but also seeks to mitigate environmental repercussions. Currently, India is heavily dependent on imports for EV batteries and cells, grappling with challenges in ensuring a consistent supply of raw materials. To counter this, the government is bolstering domestic manufacturing through initiatives like FAME II and PLI schemes, aiming to diminish import reliance and stimulate economic growth.
• In a bid to tackle sustainability challenges, India is rolling out a pilot project focused on the collection and recycling of spent EV batteries. Recycling not only recovers valuable materials but also curtails environmental pollution and champions a circular economy. Projections from NITI Aayog highlight a potential reservoir of 128 gigawatt-hours of recyclable batteries in India by 2030, with a significant chunk coming from EV batteries.
• Yet, India's current recycling capacity lags at a mere two gigawatt-hours. This shortfall underscores the need for a dramatic 60-fold increase in capacity over the next eight years to align with projected demands. The urgency is further amplified by the typical 7-10-year lifespan of Li-ion batteries, raising concerns about resource depletion and environmental risks.
• India's Battery Waste Management Rules set ambitious recycling targets for 2026, with a vision of reusing a portion of new batteries by 2030. The government is backing sustainable battery manufacturing and recycling through initiatives like the Production-Linked Incentive (PLI) scheme and battery swapping policies. Established guidelines promote safe and eco-friendly recycling practices, while R&D endeavors fuel innovation in battery technology.
• With the right government backing and technological strides, the market is poised to evolve from its nascent phase to a formidable sector, adept at meeting future demands and minimizing environmental footprints. Building a holistic recycling ecosystem will be pivotal in seizing these opportunities and navigating current challenges.

India Battery Recycling Market Trends

Demand for Lithium-Ion Battery is growing which is booting the market growth

In India, the surging demand for lithium batteries, predominantly spurred by the electric vehicle (EV) sector, is propelling the growth of the battery recycling market. Projections show that the demand for lithium-ion batteries, especially for EVs, is set to skyrocket from 4 GWh in 2023 to an impressive 139 GWh by 2035. This momentum is largely attributed to government initiatives, like the Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme and the Production-Linked Incentive (PLI) scheme, both designed to bolster electric mobility. Furthermore, the Indian government is championing battery recycling, underscored by the Battery Waste Management Rules 2022. These rules introduce Extended Producer Responsibility (EPR), compelling manufacturers to oversee the entire lifecycle of batteries, including their recycling. Such regulatory measures are pivotal in nurturing a robust battery recycling ecosystem.

With a national goal to curtail reliance on imported lithium-ion batteries, India views recycling as a strategic avenue to reclaim precious materials like lithium, cobalt, and nickel. Forecasts suggest that by 2030, 165 GWh of batteries will undergo recycling, predominantly sourced from EVs. This initiative not only fortifies resource security but also champions environmental sustainability by curbing waste. The confluence of escalating lithium battery demand, bolstered by EV adoption, supportive governmental policies, technological strides, and heightened consumer awareness, sets a fertile ground for the battery recycling market's growth in India. As these dynamics unfold, they are poised to be instrumental in crafting a sustainable battery lifecycle management framework.

Recycling Initiatives are boosting the market growth

India's ambitious drive towards electric vehicles (EVs) is heavily reliant on battery availability, a cornerstone of its Net Zero sustainability goals. Targeting 100 million EV sales by 2030, India anticipates a demand for batteries capable of delivering 145-158 Gigawatt Hours (GWh). Central to this vision is the government's Performance Linked Incentives (PLI) scheme for battery recycling, deemed vital for the initiative's success. The government has received 10 bids under the PLI Scheme for Advanced Chemistry Cell (ACC) Battery Storage, amounting to approximately 130 GWh. Coupled with existing automotive sector schemes and EV manufacturing initiatives, these efforts are steering India towards a cleaner, EV-centric transportation future.

The influx of bids underscores robust interest from both domestic and international investors. Thanks to the groundwork laid by the 'Make in India' initiative, PLI schemes are set to boost battery cell production to 50 GWh by 2026, aligning with the 2030 EV targets. Promoting battery recycling is not just economically sensible—fresh battery procurement can strain end-users and intensify the demand for precious mineral mining. Moreover, battery recycling holds promise for energy transitions across sectors like cement, steel, glass, chemicals, and transport. Such initiatives can rejuvenate resources within “secondary materials” ecosystems, making the repurposing of end-of-life EV batteries both feasible and cost-effective.

The PLI scheme for battery recycling aims to establish a circular domestic supply of secondary materials. This initiative bolsters the ACC scheme by ensuring a consistent supply of raw materials. To facilitate mineral processing for lithium-ion batteries (LIBs) — the priciest component of electric vehicles (EVs) — tax incentives and royalties are essential. In conclusion, India's strategic focus on battery availability and recycling is pivotal to achieving its EV and sustainability goals, ensuring a cleaner and more sustainable future.

India Battery Recycling Industry Overview

The India Battery Recycling Market features a competitive landscape where established players and emerging startups coexist, all responding to the urgent demand for sustainable waste management solutions amidst rising battery waste generation. Key players include Attero Recycling, Lohum Cleantech, Exigo Recycling, and others. The Indian government is taking a multifaceted approach to tackle the rising challenge of battery waste, especially with the surge in electric vehicle (EV) adoption. Through measures such as the Battery Waste Management Rules, the promotion of Extended Producer Responsibility (EPR), incentives for recycling businesses, and backing for technological innovations, India is striving to establish a sustainable battery recycling ecosystem that serves both environmental and economic interests.

India Battery Recycling Market Leaders

India Battery Recycling Market News

• April 2024: Amara Raja Energy and Mobility Ltd is poised to commence operations at its newly established lead-acid battery recycling plant in Tamil Nadu by the close of November 2024. This greenfield facility is strategically designed to enhance the company's integration of recycled lead into its manufacturing processes. Ultimately, the plant is projected to cater to 25-30% of the company's raw material requirements. Set up through the company's subsidiary, Amara Raja Circular Solutions, the plant boasts an initial recycling capacity of 100,000 metric tons annually, with ambitions to expand to 150,000 metric tons in future phases. The facility, outfitted with cutting-edge technologies such as a de-sulphurization system and oxy-fuel technology, is committed to reducing CO2 emissions and minimizing lead content in slag, thereby ensuring both operational efficiency and environmental sustainability.
• April 2024: India's escalating electronic waste (e-waste) dilemma, the Technology Development Board (TDB) entered into a groundbreaking collaboration with Remine India, a startup at the forefront of sustainable solutions. Their joint venture aims to set up a state-of-the-art commercial facility in Uttarakhand, focusing on recycling lithium-ion batteries and e-waste. This significant endeavor, backed by the Ministry of Science and Technology, is set to receive a financial boost of Rs 7.5 crore (USD 88 K) from TDB, with the overall project budget pegged at Rs 15 crore (USD 1.7 million). The state-of-the-art recycling facility will be strategically located at Eldeco, situated within the SIIDCUL Industrial Area in Sitarganj, Udham Singh Nagar district, Uttarakhand. Leveraging cutting-edge technology developed by the Centre for Materials for Electronics Technology (CMET), the plant will implement efficient and eco-friendly recycling processes.