India's EV Market Is Growing, So Is Battery Waste: How To Deal With It
By Manikumar Uppala
India’s EV market is growing at an accelerated pace, with 2 million units being sold in 2024. In 2024, EV penetration in the vehicle market increased from 6.8 per cent to 8 per cent, and we’re transitioning to cleaner mobility. Government schemes like the FAME scheme and various state-level subsidies have helped increase this market penetration, and projections suggest that India's EV market could be worth $110 billion by 2030. However, this EV growth also constitutes a mounting challenge of EV battery waste.
Lithium-ion batteries, which are the backbone of EVs, have a lifespan of about 6 to 10 years. Due to India’s EV surge, the International Energy Agency (IEA) estimates over 500,000 metric tons of battery waste will be generated by 2030. Hence, a proper waste management infrastructure is required to manage the waste that is due to be generated. We are aware of the toxic effects of battery waste if not disposed of correctly, including soil contamination and ecological degradation, along with fire hazards. Batteries are also highly resource-efficient compared to fossil fuels, with 95 per cent recyclability and potential for perpetual reuse.
What Are The Challenges?
In India, battery recycling has a few key challenges. Firstly, over 90 per cent of e-waste is handled by informal recyclers, according to TERI. There is also an infrastructure that is still nascent, as recycling capacity annually is a little over 2GWh. The Indian government proactively implemented the Battery Waste Management Rules, 2022, showing foresight and stipulating collection and recycling targets. The Ministry of Environment, Forest and Climate Change (MoEFCC) has also introduced recent amendments in 2025 to refine compliance, including options for digital labelling
To deal with the EV boom, first and foremost, a strong recycling infrastructure. Startups like ours are already working on this front by scaling up our capacities to be able to handle the waste volumes generated in India and bridge the gap between projected waste and current recycling capacity. With innovation in recycling tech, batteries can remain in circulation for near perpetuity if the recycling yield is high. The IEA’s "EV Battery Supply Chain Sustainability" report underscores that scaling up recycling facilities and increasing collection rates are essential globally, potentially reducing lithium and nickel demand by 25 per cent and cobalt demand by 40 per cent by 2050.
Collection & Segregation
Secondly, the collection and segregation infrastructure can be streamlined. This will help recyclers’ feedstock to be traceable and ensure batteries reach recyclers for resource recovery. Thirdly, second-life repurposing can also ensure better use of resources, extend battery lifespan and prevent wastage. This is because not all retired EV batteries are wasted.
After the batteries are retired for use in vehicles, they still may have 7- per cent or more residual capacity that can be repurposed. NITI Aayog even estimates that repurposed batteries could be a formidable market by supplying second-life batteries for grid storage, power backup, rural microgrids, etc. For example, in Germany, BMW i3 batteries store solar energy for residential complexes. Lastly, strong policy frameworks would help the recycling sector enormously.
$1-Billion Opportunity
Battery recycling, along with managing EV waste, presents a $1 billion economic opportunity by 2030. It can create jobs in skilled roles like chemists, engineers and in the informal sector. Recovering battery metals will also reduce import dependence and cut down lithium and cobalt imports. Startups working in this field are also attracting global investment, signalling market confidence. Recycling does have its challenges as it needs a high upfront investment, and margins are unpredictable as they are dependent on the commodity market prices. Additionally lack of standardised battery designs and ensuring consistent, homogenous feedstock are hurdles for battery recyclers.
India’s EV boom does not necessarily need to come at an environmental cost.
Infrastructure investment, innovation, strong policy enforcement, and collaboration across government, industry, academia, and consumers can convert EV battery waste in India from a liability into an asset. This will support the sustainability of its EV boom, improving resource security, creating green jobs, and enabling India to take a leadership role in the global circular economy for batteries. With the right policies and tech investments, the nation could recycle 30 per cent of its battery waste by 2027. Batteries, even spent ones, can power India’s green future instead of polluting the present if we act now.
(The author is the Co-Founder and Chief of Industrial Engineering, Metastable Materials)
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