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Amara Raja to launch battery recycling operations in TN by November end
Industry News- Nov 08,24
Currently, 83% of the lead in the company’s manufacturing comes from recycled sources.
Amara Raja Energy and Mobility Ltd plans to begin commercial operations at its new lead-acid battery recycling plant in Tamil Nadu by the end of November, aiming to boost its use of recycled lead in manufacturing. This facility, expected to supply 25-30% of the company’s overall raw material needs over time, will mark a significant step towards sustainable sourcing.
Delli Babu, CFO, Amara Raja, confirmed that the Tamil Nadu plant will begin refining operations this month, with battery dismantling to start in the fourth quarter of the financial year. Set up under Amara Raja Circular Solutions, this greenfield plant at Cheyyar will initially handle 100,000 metric tons of lead recycling annually, with plans to expand to a total capacity of 150,000 metric tons in phases.
The plant incorporates advanced technologies, including a de-sulphurization system and oxy-fuel technology, to lower CO2 emissions and minimise lead waste in slag, ensuring environmental sustainability alongside operational efficiency.
Recycling is essential for Amara Raja’s long-term cost savings and supply chain security, especially as raw material demands grow. Currently, 83% of the lead in the company’s manufacturing comes from recycled sources. This closed-loop system involves collecting end-of-life batteries from dealers, processing them through third-party recyclers, and reclaiming lead for new production.
Under regulatory mandates, battery manufacturers must achieve annual recovery targets: 70% by 2024-25, 80% by 2025-26, and 90% by 2026-27. Amara Raja has confirmed that it has met these targets and expects cost reductions from the recycling initiative. “Improving lead recovery by 2-3% could reduce material costs by about 1.5-2%,” Babu noted, depending on overall plant output.
(Autocarpro)
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