Battery recycling: India’s untapped US$ 3.5 billion opportunity

India could unlock a US$ 3.5 billion lithium-ion battery (LiB) recycling ecosystem by 2030 through targeted policy measures, according to an ICEA-Accenture report. Currently, only 1% of LiBs are recycled, with most processed informally, leading to low-recovery and environmental harm. The report recommends boosting domestic cell manufacturing, formalizing recycling, improving logistics, and restricting ‘black mass’ exports. Recycling could create up to 41,000 jobs, cut carbon emissions by 75 kilotonnes, and save 5,700 million gallons of water. With LiB demand set to reach 115 GWh by 2030, recycling is vital to reduce import dependence and meet India’s climate goals.

India has the potential to develop a US$3.5 billion lithium-ion battery (LiB) recycling and production ecosystem by 2030 through targeted policy interventions, according to a joint report by the India Cellular and Electronics Association (ICEA) and Accenture. The report titled ‘Charging Ahead – Transforming India’s Lithium-Ion Battery Recycling Ecosystem’, emphasizes that in the absence of strategic policy support and investment incentives, current LiB recycling expansion plans are expected to generate only US$500 million to US$1 billion in revenue between 2025 and 2030. 

India currently recycles just 1% of its end-of-life lithium-ion batteries into reusable materials, ICEA stated in a release accompanying the report. The low recovery rate of lithium-ion batteries underscores a serious environmental challenge as well as a largely untapped economic opportunity. Boosting the recovery of end-of-life batteries could play a key role in meeting India’s growing needs for electric vehicles, consumer electronics, and energy storage, according to ICEA.

The report outlines several critical recommendations to strengthen the domestic LiB value chain. These include:

• boosting cell manufacturing capacity, 
• expanding domestic recycling capabilities through schemes like the Production-Linked Incentive (PLI), 
• facilitating the trade of LiB scrap and black mass, and
• enhancing reverse logistics and scrap collection systems.

The proposed interventions are expected to significantly enhance India’s battery ecosystem. The report estimates that these measures could-

• unlock a cumulative economic value of US$3.5 billion by 2030, 
• create between 27,000 to 41,000 new jobs,
• reduce carbon emissions by 28 to 75 kilotonnes of CO₂ equivalent, and
• save approximately 5,700 million gallons of water.

Currently, about 39% of consumer electronics batteries that have reached end-of-life (EoL) are not collected at all. 

At present, electronics recycling in the country is largely controlled by a vast informal sector focused on repairs and spare part extraction. The report stated that of the batteries entering collection channels, approximately 80% are currently managed by unregulated informal sectors. Consequently, 45% of these collected batteries do not make it to formal mechanical recycling facilities. Furthermore, an additional 2–8% of end-of-life batteries that do reach formal recyclers fail quality checks due to improper handling by informal collectors.

Efforts to enforce extended producer responsibility (EPR) have so far had limited success in transforming the formal recycling landscape.

Industry experts point out that while the Battery Waste Management Rules 2022, offer a foundational framework, there is now an urgent need for robust infrastructure, stricter enforcement of Extended Producer Responsibility (EPR), efficient take-back systems, and a shift in mindset among all stakeholders. Emphasizing critical mineral recovery and domestic black mass processing, they say, can significantly reduce import dependency and strengthen India’s resource resilience.

ICEA Chairman Pankaj Mohindroo highlighted the strategic importance of battery recycling for India’s environmental goals and resource security. He noted that sustainability is emerging as a major economic opportunity. Battery recycling, he said, lies at the crossroads of India’s environmental goals and its need for strategic independence in critical minerals. With the right policy framework and entrepreneurial energy, India can develop a US$3.5 billion circular battery economy, reduce reliance on imports, and position itself as a global leader in clean technology. He also announced the launch of the Centre of Sustainability for Pure Earth.

The industry experts echoed concerns over the technological limitations in India. One expert noted that products like the iPhone contain up to 69 elements, many of which Indian facilities currently cannot recycle. He urged the government to impose restrictions on the export of black mass—the intermediate product derived from spent batteries—citing China’s ban on black mass exports as a precedent. Another expert pointed out that the country lacks the necessary technology to extract high-quality elements from used batteries. He cautioned that without cost advantages and quality comparable to newly extracted raw materials, recycled materials are unlikely to gain acceptance among industries.

 India’s lithium-ion battery demand is expected to soar to 115 gigawatt hours (GWh) by 2030, according to the report. It highlights that battery consumption driven by electric vehicles (EVs) is expected to grow at a compound annual growth rate (CAGR) of 48%. Meanwhile, demand from consumer electronics, is anticipated to grow at a CAGR of 3%, and stationary storage devices are set to see a 14% CAGR over the next five years. The report also estimates that by 2030, demand for key battery-active materials—lithium, cobalt, nickel, and manganese—will reach 250 kilotonnes, resulting in an import dependency exceeding US$ 5 billion.

The report suggests that expanding domestic cell manufacturing capacity is key to generating sufficient demand for recycled materials. This would help establish a strong local market for recyclers, spurring additional investment and industry expansion. It points to China and South Korea as examples, where hydrometallurgical recycling advanced only after the growth of domestic cell production.

Under its COP26 “Panchamrit” commitment, India aims to achieve 500 GW of non-fossil fuel electricity capacity and reduce carbon emissions by 1 billion tonnes by 2030. It also targets a 45% reduction in emissions intensity of GDP and reaching net-zero emissions by 2070. According to the report, India’s success in meeting these goals will depend significantly on its ability to scale up lithium-ion battery production while effectively managing supply chains and minimizing environmental impact.