Introduction

Electric vehicles (EVs) are the future of transportation in India. The lives of the batteries can be extended after their complete utilisation in electric vehicles by refurbishment, repurposing, and reuse before recycling to extract the precious raw materials. Recycling uses various processing methodologies, such as mechanical, hydrometallurgical or pyrometallurgical, essential for extracting important elements like lithium.

By adopting a circular economy model, we can promote environmental sustainability and create economic opportunities for refurbishment, re-manufacturing, and recycling within the battery industry. This paradigm shift is essential for a sustainable and greener future in the energy storage sector.

When EV batteries reach the end of their primary life, they still hold substantial energy. Therefore, it is crucial to ensure their sustainable disposal. Instead of discarding used EV batteries, repurposing them for second or third-life applications is a better alternative. With rapid advancements in battery recycling, it is possible to achieve more than 95% recovery rates. This process is known as urban mining. With projections indicating a substantial increase in battery volumes by 2030, the urban mining industry is set to expand significantly.

Battery recycling: Global outlook

Europe is leading the way in battery recycling with a comprehensive regulatory framework that requires producers to take responsibility for the end-of-life management of their batteries. China, the world's largest electric vehicle and battery market, released a new policy requiring manufacturers to recycle 70% of their used batteries by 2025.

The United States is also increasing its focus on battery recycling, with the Department of Energy launching a new initiative to develop recycling technologies and processes to recover critical materials from lithium-ion batteries. According to a report by IDTechEx, the Li-ion battery market is predicted to reach over US$430 billion by 2033, while the market for recycling lithium-ion batteries is expected to reach USD 18 billion by 2030(Source). 

How the India market is shaping up

The Niti Aayog predicts that India's EV battery recycling market is set to expand to 128GWh by 2030— from a mere 2GWh in 2023 (Source). By 2030, recycled materials from old batteries will enable the production of 60 GWh LIB cells in India, reducing reliance on imports and opening new economic prospects for Li-cell makers.

The Ministry of Environment, Forest and Climate Change (MOEFCC) has introduced Battery-Waste Management Rules-2022, which covers all battery types and makes producers responsible for collecting, recycling, and reusing waste batteries.  The policy also encourages new industries in battery recycling, mandates material recovery, and promotes using recycled materials in new batteries. In the long run, this enables streamlined reporting and auditing.

Before they are recycled, batteries undergo multiple treatments. These include: