India’s battery recycling industry has reached a pivotal moment, propelled by ambitious policy incentives, regulatory shifts, and rapid advances in technology. According to the IMARC Group, the market was valued at USD 554.4 million in 2024 and is set to more than double to USD 1,304.1 million by 2033 (CAGR: 8.93 per cent for 2025-33), signalling the country’s commitment to a sustainable, circular battery ecosystem as part of its clean energy ambitions.

The Ministry of Mines, under the NCMM, has launched an Rs 15 billion incentive scheme to support recyclers of e-waste, lithium-ion batteries (LiB), and end-of-life vehicles (ELVs), while the removal of customs duty on waste and scrap in 2024 aims to boost feedstock availability. However, the market faces complexities: the shift toward Lithium Iron Phosphate (LFP) batteries, stricter international waste regulations, and recent domestic policy changes have created feedstock shortages and operational challenges, particularly for smaller players. Despite these headwinds, the industry’s long-term prospects remain strong, provided technological innovation and responsive policies keep pace with market needs.

Debmalya Sen, President, India Energy Storage Alliance, said, “India stands at a crucial juncture in building a circular battery economy. Our recommendations are designed to streamline regulations, incentivise innovation, and foster collaboration between industry and policymakers. This will not only address current feedstock and compliance challenges but also unlock new opportunities for sustainable growth in India’s battery recycling sector.”

India’s industry body, the India Energy Storage Alliance (IESA), has submitted a comprehensive set of recommendations for policymakers and stakeholders, recommendations to government to accelerate India's battery recycling ecosystem.

Shreya Sikarwar, Recycling Specialist, India Energy Storage Alliance, emphasised, "To truly scale battery recycling in India, we must focus on eco-design, robust traceability, and standardised quality benchmarks. By integrating informal sector players and embracing global best practices, India can lead Asia in responsible, efficient recovery of critical minerals and drive the next wave of clean energy manufacturing."

IESA recommends that the government should define clear roles and responsibilities under the Battery Waste Management Rules, including recognising remanufacturers of second-life batteries as producers at the repurposed stage and establishing specific criteria for when a battery is considered “second-life.” There must also be clarity on who verifies recycler credentials and accountability in cases of fraudulent or non-compliant EPR transactions. To incentivise eco-design for easier recycling, the introduction of an “Eco-Mark” certification is suggested for batteries designed for recyclability and safe dismantling, alongside encouragement for the use of water-dispersible binders, recyclable fixtures, and non-thermoset adhesives.

Enabling secure data-sharing protocols between OEMs and second-life manufacturers is crucial, as is adapting international standards such as UL 1974 and IEC 62933 to ensure the safety and reliability of repurposed batteries. Additionally, the adoption of sustainability certification for recyclers, adherence to benchmarks for energy, water, and emissions, and aligning collection, recovery, and recycled content usage targets with emerging battery chemistries and domestic manufacturing capabilities are pivotal. Harmonising regulations with waste categories, updating EPR floor prices, and auditing EPR credit trading practices are essential for effective implementation.

Standardising guidelines for black mass management includes fixing the composition of recycled products, assigning unique HS codes, mandating batch-wise chemical testing, and adopting global best practices. Exports should be limited to CPCB-registered recyclers to eliminate traders from the system. Ensuring the quality of recovered materials requires accredited labs for certification and the development of quality benchmarks for integration into manufacturing.

IESA further recommended strengthening traceability frameworks through unique digital IDs and blockchain transparency, formalising and upskilling the informal sector, and linking informal aggregators to authorised recyclers. Rationalising taxation by reducing GST rates on scrap, black mass, and second-life products, enhancing compliance and audit mechanisms, mobilising financing through green credits, carbon markets, and priority sector lending, and driving consumer awareness with producer-led initiatives and deposit refunds are key steps.

These measures will help create a robust, transparent, and sustainable battery recycling ecosystem, supporting India’s mission of fostering a circular economy, achieving clean energy goals, and securing critical mineral supply chains for long-term growth.