Absent Connection in India’s Battery Waste Management

The Surge of Electric Vehicles and Energy Storage in India

India is experiencing swift electrification, propelled by decarbonization targets and the growing acceptance of electric vehicles (EVs).

The demand for lithium batteries is anticipated to surge from 4 GWh in 2023 to almost 139 GWh by 2035, driven by electric vehicles and Battery Energy Storage Systems (BESS) within the renewable energy industry.

Rising Battery Waste Emergency

In 2022, lithium batteries accounted for 700,000 metric tonnes of India’s total e-waste of 1.6 million tonnes, with an expectation of producing more than 2 million tonnes of lithium-ion battery waste by 2030.

If not recycled or disposed of correctly, these batteries present significant dangers such as:

Harmful Leachates: Metals such as lithium, cobalt, and nickel may pollute soil and groundwater.

Fire Risks: Batteries that are stored incorrectly can lead to thermal runaway and explosions.

Air Pollution: Unregulated recycling frequently entails incineration or acid extraction, emitting toxic gases.

A significant amount of battery waste is disposed of in unregulated informal sectors, where employees do not have protective equipment and environmental protections are not in place, despite these risks.

Associated Projects & Endeavors

Battery Waste Management Rules (BWMR), 2022: It requires Extended Producer Responsibility (EPR) from battery producers.

It encompasses the collection, recycling, and reuse of various battery types, such as lithium-ion and lead-acid.

Extended Producer Responsibility (EPR): It requires battery manufacturers to guarantee proper collection and recycling, typically through licensed recyclers.

In exchange, recyclers issue EPR certificates that confirm the recycling initiative.

A key aspect of this framework is the EPR floor price—the lowest sum producers must compensate recyclers for each kilogram of waste recycled.

Battery Energy Storage Systems (BESS): ₹5,400 crore sanctioned for 30 GWh of BESS to stabilize the grid and store renewable energy.

The Central Electricity Authority suggests that BESS be co-located with solar projects to enhance grid dependability.

Policy Deficiencies and Obstacles

• Even with the implementation of the Battery Waste Management Rules (2022), numerous gaps remain:
• Ineffective implementation of Extended Producer Responsibility (EPR) regulations;
• Restricted reverse logistics for gathering worn batteries from consumers;
• Lack of recycling facilities, particularly in rural areas;
• Limited public knowledge regarding proper disposal methods;
• Disjointed regulations that ignore non-lithium chemistries such as lead-acid and nickel-cadmium;

An Unrealistic EPR Minimum Price: The existing EPR minimum price is excessively low, rendering it financially unviable for formal recyclers to function efficiently.

When recyclers do not receive proper compensation, it creates opportunities for unregulated operators to provide fake certificates or unlawfully dispose of hazardous waste, repeating the mistakes observed in plastic waste management.

Economic Stakes: Poor recycling practices not only damage the ecosystem but also carry major monetary consequences.

By 2030, India may forfeit more than $1 billion in foreign exchange because of unrecovered battery resources.

No Financial Strain on Consumers: Increasing the EPR minimum price does not automatically raise prices for end-users.

Manufacturers have not transferred these advantages to consumers, indicating that OEMs can handle increased recycling costs, even with a decrease in global metal prices.

Suggestions for Policy

Revise the EPR Floor Price: Establish a reasonable, market-consistent floor price that accounts for complete recycling expenses—from collection to material recovery—and modifies as the market develops.

Enhance Regulation:

• Conduct audits to deter fraudulent certifications;
• Digitalize the issuance and monitoring of certificates;
• Implement rigorous sanctions for failing to comply.
• Incorporate the Informal Sector:
• Educate and validate unregistered recyclers;
• Deliver regulatory and logistical assistance;
• Increase recycling capabilities while reducing harmful practices.
• Gaining Insights from Worldwide Methods
• Global standards emphasize India's pricing disparity:
• UK’s EPR base rate for EV batteries: ~₹600/kg;
• Suggested floor price in India: Under a quarter of that.

India's pricing continues to be infeasible for sustainable operations, even when accounting for purchasing power.