Battery recycling in the era of electric vehicles (EVs) and battery energy storage systems (BESS)

Amidst India’s ambitious transition towards sustainable practices and large scale adoption of electric vehicles (EVs) and battery energy storage systems (BESS), the need for effective battery recycling is critical. According to a report by NITI Aayog,  cumulative stock of lithium-ion batteries in India is projected to reach 600 GWh by 2030 whereas the recycling potential is around 128 GWh. To address this gap, there is an urgent need to understand and mitigate environmental impacts, recover valuable materials such as lithium, cobalt, and nickel, and support a circular economy, ensuring the sustainable growth of the battery sector in India.

Current Government Policies For Battery Recycling 

In 2020, MoEFCC published the draft Battery Waste Management Rules under the Environment (Protection) Rules 1986 in order to establish a regulatory framework to strengthen the ecosystem for handling batteries across India while ensuring safe disposal and recycling

In 2022, the Lithium-ion Battery Waste Management Rules, 2022 was introduced to regulate the recycling of lithium-ion batteries in the country. This rule covers all types of lithium-ion batteries including those used in electric vehicles, laptops and mobile phones. The key provisions of this act includes:

• Collection and Recycling : Manufacturers or importers of lithium-ion batteries must collect and recycle the batteries at the end of their life cycle. The collection target is set at 25% in the first year, gradually increasing to 70% by the fifth year of implementation.
• Battery Disposal: The rules require the disposal of spent batteries to be done in an environmentally sound manner and in compliance with the guidelines issued by the Central Pollution Control Board.
• Record Keeping: The manufacturers or importers of lithium-ion batteries must maintain records of the quantity and type of batteries they produce or import, as well as their collection and recycling activities.
• Extended Producer Responsibility: The rules establish Extended Producer Responsibility (EPR) for the manufacturers or importers of lithium-ion batteries. They are required to bear the financial and/or physical responsibility for the proper management of the batteries they produce or import.
• Penalties: The rules provide for penalties for non-compliance, including fines and imprisonment.

Need for Recycling 

Although LIB (lithium ion battery) based energy storage is a promising solution to achieve the climate targets set by India on the global stage, several challenges need to be addressed to make the LIB value chain sustainable. 

• Environmental Sustainability : The key need for recycling comes from its ability to reduce the environmental hazards and mitigate damage. Improper disposal can lead to soil and water contamination from toxic substances like lithium, cobalt, and nickel. Furthermore, recycling will help recover valuable materials, thus reducing the reliance on virgin resources. 
• Economic Benefits : As the demand for EVs and other battery- powered devices grow, lithium-ion battery recycling holds huge potential as an industry. Efficient recycling processes can recover between 50-95% of valuable materials from these batteries and recycling of individual materials can save costs of mining, processing and transporting. 
• Regulatory Compliance: The Battery Waste Management Rules, 2022 and initiatives like the National Electric Mobility Mission Plan (NEMMP) 2020 and the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme also support the recycling industry by boosting EV adoption and, consequently, the demand for recycled battery materials.

Way Forward 

The rapid increase in the usage of batteries in EVs and energy storage applications makes it critical to have proper methods for sustainable handling of these batteries at their end-of-life. India needs to focus on cultivating opportunities to implement circular economic principles for lithium-ion batteries and having a strict policy framework with strong monitoring to develop the domestic battery manufacturing industry. Furthermore, India needs a clear and strict policy framework with strong monitoring and enforcement capabilities to prevent growth of informal markets, as well as encourage heavy investments in recycling infrastructure.