Electric vehicles have many advantages over traditional fossil fuel cars. They produce no tailpipe emissions, do not make use of polluting motor oils or lubricants, have efficient driving systems and quiet motors, making them eco-friendly. Pivotal to the EVs’ eco-friendliness are its batteries, which are largely lithium ion batteries. These batteries allow for repetitive charging and discharging cycles without emitting air pollutants.
Lithium ion car batteries last 7-8 years on an average, which can be stretched to a decade depending on usage. Of all the various types of lithium ion batteries, Lithium Ferro Phosphate (LFP), Lithium Nickel Manganese Cobalt Oxide (NMC) and Lithium Nickel Cobalt Aluminium Oxide (NCA) are most widely adopted for EVs.
EV adoption is rising rapidly in India, driven by concerns of air pollution and a trade deficit from crude oil imports. Major automakers like Maruti Suzuki India, Tata Motors, Mahindra are leading the way in EV four wheelers manufacturing. There has been a steady rise in sales of EVs in India. From 22-23 to 23-24, EV sales increased by 130.45% across vehicle types. EV manufacturing is propelling indigenous cell manufacturing as well, to curb the requirement of cell imports. Ola, Tata group, Log9 are several companies readying to enter India’s cell manufacturing space. There is a definite need for a robust recycling ecosystem to support the high rate of EV adoption. Recycling batteries could also lower dependence on problematic foreign sources for battery materials required by cell manufacturers and raise supply chain security.
Two main concerns with lithium ion batteries include reliance on virgin material mining, which has posed a range of environmental and social issues; and secondly, the potential hazards from disposal of lithium ion batteries into landfills. Recycling is an answer to both these issues. Methods for recycling include hydrometallurgy, pyrometallurgy, direct recycling and newer mechanical processes like integrated carbothermal reduction. Batteries go through crushing, shredding, using solvents or heat to extract valuable materials from batteries, producing what’s known as black mass. Black mass consists of a large amount of battery anode and cathode materials, which are further extracted. Hydrometallurgical process dominates the recycling industry as it is more efficient in recovering battery materials (approx 95%), with lower emissions, compared to pyrometallurgy. In India 80% of recyclers use hydrometallurgy and produce battery materials, metal salts, etc. The remaining 20% of recyclers use mechanical processes, some of which are advancing towards chemical-free, high-purity metal extraction.
Startups are seizing opportunities in this emerging sector, anticipating growth as the first wave of EV batteries nears retirement. The top recyclers in India can recycle anywhere between 2000 – 10,000 tonnes of batteries in a year. As the market expands, all recycling companies are scaling operations domestically and internationally, gearing up to handle substantial recycling volumes projected in the coming decade. Collectively, battery recycling capacity of India stands at 44,000 tonnes in July, 2024 (of which about 10000 tonnes are pre processing such as shredding) or a little above 2 Gwh approximately. According to NITI Aayog estimates, new batteries would create a recycling volume of 128 GWh by 2030, of which around 46 percent will come from EVs. India’s lithium battery recycling capacity would have to increase about 60 times over the coming years, from the current levels to be ready for such volumes.
India’s policies on EV battery recycling aim to address import dependence and environmental concerns. The Production-Linked Incentive (PLI) scheme for advanced chemistry cells promotes local manufacturing, while repurposing retired EV batteries for various applications reduces demand for new ones. The Battery Waste Management Rules (BWMR) 2022 mandate Extended Producer Responsibility (EPR) and tracking mechanisms, which is a good starting point though it lacks specific LIB-focused policies and stringent implementation measures. Recycling efforts would be strengthened by strengthening standards and regulations. The battery reuse and recycling ecosystem faces challenges as well as promising innovation opportunities. Challenges include the dominance of an unorganised sector in recycling, posing safety and environmental risks. Managing data, asset tracking, and ensuring safe transportation and storage are critical concerns. Fluctuation in the metal prices adds complexity as the profit margins in recycling batteries remain unclear. To run lithium-ion facilities efficiently and profitably, operations need to be large scale. An average recycling plant with a recycling capacity of 18000 metric tonnes requires investments of Rs 220 to 240 crores. New indigenous technologies offer potential cost reductions, but substantial investments are still needed in recycling. Opportunities include developing robust formal sectors, improving data management tools, and establishing safety standards that can transform the industry. Investment in developing cost-effective indigenous technology and collaborations between research and industry can accelerate technological advancements. Guidelines for Extended Producer Responsibility (EPR) and battery design can promote sustainable practices and efficiency.
India’s current recycling capacity falls short of what’s needed to handle the impending surge of EV batteries yet it is promising. Strengthening regulations, fostering a formal recycling sector, and embracing technological advancements are crucial for building a sustainable battery recycling ecosystem. India’s battery waste challenge can be curbed by circular economy solutions like reuse and recycling. It would require the collective efforts of all stakeholders from policymakers, investors, manufacturers and waste collectors, to enable India to handle the waste battery challenge coming our way.
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