As India embraces the electric vehicle (EV) revolution, the challenge of managing end-of-life lithium-ion batteries looms large. With the Li-ion battery market expected to reach 132 GWh by 2030, the recycling sector is poised for tremendous growth, presenting a $1 billion opportunity. At the forefront of this transformation is Gaurav Dolwani, CEO of LICO Materials, who is leading the charge to create a sustainable circular economy in the battery supply chain. In this interview, Dolwani shares his insights on India’s current capabilities in battery recycling, the impact of government policies, and LICO Materials’ strategic role in shaping the future of the EV market.
- Could you provide an overview of the current landscape of end-of-life lithium-ion battery recycling in India?
Fuelled by government initiatives and growing environmental concerns, the adoption of EVs is rapidly transforming India’s transportation landscape. However, this promising sector presents a new challenge: the responsible management of Lithium-ion (Li-ion) batteries that power these vehicles. As the use of Li-ion batteries explodes, India has a unique opportunity to establish itself as a leader in the sustainable and responsible recycling of these critical components. JMK Research estimates that India’s Li-ion battery market will reach a staggering 132 GWh by 2030, translating to a potential $1 billion opportunity in the battery recycling sector.
- How would you assess India’s current capabilities in processing black mass from recycled batteries and what improvements are needed?
Currently India’s current capabilities is at a very pilot stage without any validation. It requires large capacities which can recover metals at battery grade purity so that they can be given back to battery manufacturers for closing the loop. While there is a nascent policy on battery recycling, it lacks the robustness needed to guide citizens on proper disposal methods. OEMs are beginning to scrap batteries, but the critical step is to recycle these batteries effectively.
- What effects would be reducing GST on batteries have on the recycling industry and the EV market in India?
As part of the battery recycling industry, we look forward to intervention such as PLI and FAME to further bolster the growth of the sustainable mobility sector. We also expect standardization of GST on batteries from 18% to 5% for ESS and e-mobility. Reducing GST will help demand and supply across the battery supply value chain, making EV adoption more accessible and accelerating India’s transition to clean energy.
- How are the new Battery Management Rules influencing your strategy and operations at LICO Materials?
As a recycling company, we are happy with the rules. The first draft of the policy needs some amendments which are underway. The implementation of the rules has some holdups, but we are confident in the governments overall vision towards a circular economy. We are also working alongside the CPCB on the implementation of EPR for enhancing the battery value chain.
- How do the Critical Mineral Mission and customs duty exemptions influence the growth of India’s battery industry?
The exemption of customs duty on critical minerals like Lithium Cobalt and nickel will give a boost to India’s efforts in renewable energy and electric vehicle sectors. It’s a big step towards achieving sustainability. As a recycling company, we welcome the proposal. The price benefit will be passed onto the end user fueling government’s electrification vision for 2030 and net zero vision of 2070.
The decision to establish a Critical Mineral Mission is a game-changer for our recycling industry. By focusing on recovering and reusing essential minerals, like Lithium and Cobalt, we’re not only reducing waste but also strengthening our sustainable practices.
- As CEO, what strategic role do you envision for LICO Materials in India’s evolving EV market?
According to NITI Aayog, there will be 128 GWh worth of batteries available for recycling by 2030, excluding production waste from cell manufacturers. Considering the accelerated adoption of EVs, particularly in the 2W and 3W sector. LICO with its combined capacity across two plants will contribute to 4 GWh with intent to expand to 10 GWh by 2027.
In the short term, LICO is expanding its mechanical operations to its second facility being built in Bengaluru with a significantly larger capacity than Mumbai.
With our 2nd facility in Bengaluru to be commissioned by October 2024, LICO is positioned to be one of India’s largest battery recyclers, expanding up to of 25,000 tons annually by 2026.There are some more advancements in the process that will be used in Bengaluru to ensure that our products are of the highest purity in comparison with global standards.
In the long term, LICO is finalizing its downstream project at commercial scale to build a Hydrometallurgy plant in India where we will be able to recover metal salts from the back mass, we produce, at battery grade purity to give back to anode and cathode manufacturers and close the loop.
