Battery Waste Management in India: Issues and the Way Forward

Context: Rapid EV adoption and renewable energy transition are increasing battery usage and hence battery waste in India. Effective recycling and waste management are crucial for sustainability.

Background: Rise in Battery Demand

• EV Battery Demand:

  • 4 GWh (2023) → Projected 139 GWh (2035)

• Drivers:

  • Electric vehicles

  • Battery Energy Storage Systems (BESS) for renewables

  • Net Zero target by 2070

Environmental and Waste Challenge

• Hazards:

  • Improper disposal leads to leakage of toxic materials into soil and water

• Battery Waste Volume (2022):

  • Lithium batteries: 7 lakh MT

  • Total e-waste: 1.6 million MT

Battery Waste Management Rules (BWMR) 2022

• Key Feature: Extended Producer Responsibility (EPR)

• Producers must finance collection & recycling

• EPR Certificates: Issued by recyclers to prove compliance

• EPR Floor Price: Minimum payment to recyclers for infrastructure, R&D, labour, etc.

• The e-waste (Management and Handling) Rules, 2011 introduced 'extended producer responsibility'. 

Core Issues

1. Inadequate EPR Floor Price

• Too low to make proper recycling viable

• Legitimate recyclers cannot operate sustainably

• Encourages informal and fraudulent recyclers:

  • Issue fake certificates

  • Unsafe dumping → environmental risks

• Hampers mineral recovery (Lithium, Cobalt, Nickel) → increases import dependence

• Est. loss if unaddressed by 2030: $1 billion in forex

2. Resistance from Producers

• Global MNCs follow relaxed standards in developing nations

• No cost pass-through to consumers despite metal price drop

• Manufacturers can absorb EPR cost increases

Global Comparison

• UK EPR Rate for EV Batteries: ₹600/kg

• India’s Proposed Rate: Less than ¼ of UK rate

• Even adjusted for PPP, Indian rates are too low

Recommendations

1. Reform EPR Pricing

• Align EPR floor price with global practices and actual recycling costs

• Prevent market distortion, ensure fair compensation

• Build standardised, mature recycling markets over time

2. Strengthen Enforcement

• Digitise certificate tracking

• Strong audits and penalties for fraud

• Corporate accountability mechanisms

3. Formalisation of Informal Sector

• Training and regulatory integration

• Expand recycling base and eliminate hazardous practices

Conclusion

Battery waste management is not just an environmental issue but a strategic and economic imperative. A fair and enforceable EPR regime is key to:

• Sustainable EV and clean energy transition

• Realising circular economy goals

• Reducing critical mineral import dependence

• Protecting ecosystems and public health