Last mile logistics and public transport in India are rapidly adopting electric vehicles and reshaping the industry outlook. Globally EV growth is expected to boost battery demand fourfold by 2030. Considering its domination, without a solid recycling and reuse strategy, this growth could strain the supplies of key minerals like lithium, cobalt, and nickel. In this view, recycling and second-life use are becoming essential technologies for material security and cost optimisation.
The Battery Waste Management Amendment Rules, 2025,which have been effective from February 24 2025, strengthen traceability throughout the battery lifecycle, extend obligations under Extended Producer Responsibility (EPR) to all relevant stakeholders, mandate digital labelling (QR codes/barcodes), and relax certain hazardous substance marking requirements for low-cadmium or low-lead batteries. They also expand the scope to include EV batteries, service providers, and e-commerce participants.
Technical Realities of Fleet Battery Wear
Where the average EV battery loses around 1.8% of its capacity each year, fleet use accelerates the decline with its intensive operations. The EV battery recycling infrastructure is underdeveloped and fragmented – especially when compared with the relatively well-established, though modestly scaled, lead-acid sector. In this context, the natural first line of defence has to be active battery health monitoring. Leveraging telematics in such scenarios can help in optimising battery life. Telematics tracks State of Health (SoH), depth of discharge, temperature, and charge rates for optimal usage. These adjustments can meaningfully lengthen the life of the batteries, slowing the expense and complexity of replacement.
Turning End-of-First-Life into Opportunity
When a battery no longer meets the performance requirements for vehicle use, it need not be discarded. Many retain 70-80% of their original capacity, making them ideal candidates for second-life applications such as stationary energy storage. That said, second-life use is not a universal solution. Only modules with a clean safety history and acceptable SoH should be repurposed; the rest should be sent directly to certified recyclers. Here, hydrometallurgical processes are increasingly capable of recovering valuable metals and feeding them back into the battery manufacturing loop, hence reducing the need for mining new raw materials.
Building a Practical Solutions Stack
Fleet operators can take a structured approach to battery lifecycle management by focusing on several key areas such as:
- Collect and store performance data from day one to enable proactive maintenance and future needs.
- After a battery’s first use, follow a clear process to check its condition, keep track of it, and decide whether to repair, reuse, or recycle it.
- Pilot depot-based storage projects with batteries graded by their condition to validate safety, performance, and business case for second life use.
- Establish multi-year contracts with certified recyclers, providing recovery efficiency, compliance, and transparency.
- Align contracts with take-back commitments and recycling as per key performing indicators, as well as introducing QR/barcode labelling, data capture, depot collection nodes, and second-life pilots progressively over 24-36 months.
India’s lithium-ion battery recycling industry is still in the development stages. However, the evolving regulations and tariff incentives are helping it push forward effectively. As the world moves toward cleaner mobility, studies keep showing that EVs are technologically advanced and economically practical. For fleet operators, investing in battery lifecycle management is less of a choice and more of a smart investment for long-term sustainable growth.
