India is rapidly expanding its electric vehicle (EV) market, with EV battery capacity expected to reach significant volumes by 2030. However, this surge will lead to a large volume of end-of-life (EoL) lithium-ion batteries that must be managed responsibly. By 2030, 90% of India’s lithium-ion battery demand is expected to come from EVs, and battery waste from EVs and stationary storage could exceed 10 million tonnes between 2025 and 2040. This emerging challenge offers an opportunity to establish a circular battery economy through recycling, repurposing, and reuse.
The report, supported by the EU-India Clean Energy and Climate Partnership and PwC, outlines a comprehensive strategy for battery waste circularity in India. It stresses the need for a closed-loop system that supports continuous recycling and reuse of battery materials to reduce environmental impact and strengthen supply chains. The current scenario in India reveals that despite a recycling capacity of ~83 kTPA, about 95% of used batteries are either handled by the informal sector or end up in landfills. The dominant role of informal scrap dealers, or “kabadiwaalas,” in battery collection limits the effectiveness of formal recycling systems.
To address these issues, India introduced the Battery Waste Management Rules (BWMR) 2025. These rules mandate that manufacturers meet Extended Producer Responsibility (EPR) targets for battery collection and material recovery. However, challenges persist across the battery value chain, including a lack of standard battery designs, the absence of tracking systems for reused batteries, inefficient segregation and transport logistics, and limited domestic processing of recovered materials. Economic constraints, such as low recycling returns for certain chemistries like LFP, further complicate the business case for recyclers.
The report also identifies the growing importance of second-life applications for used EV batteries. Many EoL batteries retain up to 70–80% of their capacity, making them suitable for less demanding stationary storage applications. This repurposing can extend battery life and reduce the cost of storage solutions. Technologies like hydrometallurgy are gaining traction due to better material recovery rates and environmental performance, though pyrometallurgy and emerging direct recycling processes are also being explored.
One of the key strategic recommendations is to adopt a hub-and-spoke model for battery recycling in India, where local facilities collect and shred used batteries into black mass, which is then refined at centralized plants. This model helps reduce transportation costs while maintaining economies of scale in the refining stage. The report also emphasizes the need to strengthen domestic refining capabilities to prevent valuable materials from being exported and lost to the circular economy.
In conclusion, India’s battery circularity ecosystem is still in its early stages and requires significant interventions to mature. The report proposes short-, medium-, and long-term strategies to build a robust infrastructure, scale up advanced recycling technologies, and foster cross-border collaborations, especially with the European Union, which has already implemented successful battery recycling systems. If these recommendations are adopted, India can ensure supply chain resilience, environmental sustainability, and economic opportunity in the fast-growing EV battery sector.
