Lithium-ion batteries (LIBs) are recognised as the new-generation power source replacing fossil fuels to power EVs. According to NITI Aayog, 128 GWh of battery waste will be generated by 2030, of which 59 GWh will come from the EV sector alone.(1) Battery waste from the EV sector is expected to increase six-fold by 2040 and ten-fold by 2050, according to the report findings.
Key Objective: Achieving Circularity of the EV Battery Supply Chain
Objective 1: EV Battery Waste Projection & Critical Mineral Recovery
Battery waste is projected to grow between 2030 and 2050, with estimates ranging from 37-80 GWh in 2030 to 554-626 GWh in 2050.
The project explores two sub-scenarios to account for different battery technology paths: one with a higher share of NMC chemistry and another with a greater emphasis on LFP chemistry. In both cases, recovered materials are capable of meeting 25-40% of the critical raw materials required for battery manufacturing.
Objective 2: Technology Assessment of Recycling Technology
Hydrometallurgy (acid-leaching) was identified as having the highest potential for adoption in the Indian recycling ecosystem, based on its technical efficiency.
Direct recycling is the most suitable recycling technology based on economic and environmental parameters. While it is currently at pilot scale, it emerges as the most optimal technology for the future: it is more environmentally friendly and requires less economic investment.
Strengthening India's battery supply chain
India currently depends heavily on imports of the critical minerals used in LIBs and battery cells. In line with its Production-Linked Incentive (PLI) programme for Advanced Chemistry Cell (ACC) batteries, India has made notable strides toward expanding its battery production capacity.(2)
With a long-term goal of reaching 50 GWh by 2030, India is on track to reach its short-term goal of 25 GWh of battery production capacity by 2025.(3) These facilities will primarily serve the expanding needs of the EV industry. As demand for batteries grows and access to raw materials remains limited, ensuring circularity in the EV battery supply chain's especially through recycling‚is increasingly urgent.
Recovering resources, reducing environmental impact
The International Energy Agency (IEA, 2021) estimates that by 2040, recycling critical minerals from used batteries could reduce overall primary supply requirements by approximately 10%.(4) Unlocking battery recycling is therefore crucial for sustainable development and environmental protection as India pursues its e-mobility transition.
Today, EV battery recycling infrastructure in India remains underdeveloped. As a result, many batteries risk being disposed of in landfills or informal recycling units, creating environmental hazards. Technological readiness for battery recycling is essential to make a circular economy for EV batteries a reality.
A closed-loop path forward
Battery recycling conserves valuable resources, reduces emissions, promotes economic growth and supports compliance with environmental regulations. By transitioning to a sustainable closed-loop system's where batteries are recycled rather than discarded,we can support the long-term health of both the planet and the economy.
Adopting this approach will help manage the growing volume of EV battery waste, which is projected to increase six-fold by 2040 and ten-fold by 2050.