India’s push for battery recycling promises jobs, clean energy and mineral security

Across India, a nascent battery recycling industry is emerging as a critical component in the nation’s transition to clean energy, though it faces significant challenges amid growing opportunities.

In the past decade, a developing system has begun recovering valuable materials from batteries used in electric vehicles, smartphones, and consumer electronics. Companies like Lohum Cleantech are extracting minerals such as lithium, cobalt, and nickel for reuse in India’s expanding fleet of electric vehicles and solar installations, reducing the country’s dependence on imports for these hard-to-obtain metals.

“More than 40% of the country’s copper and aluminum needs are met by recycling scrap, and we want to aspire for the same when it comes to lithium, cobalt, and nickel,” said Rajat Verma, founder and CEO of Lohum Cleantech, a battery manufacturing and recycling company based near New Delhi.

According to a November study by renewable energy think tank RMI, a formalized recycling system could potentially create 100,000 green jobs and meet nearly 40% of India’s demand for key minerals. As India’s battery demand skyrockets, primarily driven by electric vehicles, the industry around recycling and reusing batteries could be worth $9 billion.

“What’s exciting about these materials is it’s not like plastics. You can recycle them for perpetuity, and they can still have material strength and the quality you need once you refine them,” explained Marie McNamara, a manager with RMI’s India program who co-authored the report.

The sector, however, faces significant hurdles. Despite having 60,000 tons of battery recycling capacity, much remains unused as supply chains are still developing. A primary challenge stems from India’s waste recycling ecosystem, which largely relies on an informal workforce—estimated at up to four million people—who handle various scrap materials without formal contracts.

India ranks among the world’s highest emitters of greenhouse gases as it provides power for its massive population. Simultaneously, its clean energy sector has grown rapidly, particularly in solar power and electric vehicles. In 2022, the government implemented battery waste management rules mandating environmentally safe disposal and management of battery waste, with heavy fines for violations.

However, experts and recycling companies report poor implementation of these regulations. Companies must establish their own recycling systems without designated outlets for discarded batteries. Jaideep Saraswat, an energy expert with the New Delhi-based Vasudha Foundation, noted that while India has moved “surprisingly fast from a policy perspective,” the appropriate battery recycling supply chain remains underdeveloped.

Battery recycling processes vary but typically involve either “shredding” battery modules into powder using machines or smelting them in industrial furnaces. These products are then processed using acids or chemicals to recover specific metals. Alternatively, discarded batteries can be repurposed to store excess solar and wind energy for homes and small businesses.

Environmental concerns persist, as toxic contaminants are sometimes illegally dumped by recyclers. If not properly managed, lithium battery recycling can emit carbon monoxide and other hazardous gases, while the process produces wastewater containing heavy metals that can contaminate soil and water.

“We’ve not expanded much in India because we don’t see much appreciation for clean operations, whether it’s lead or lithium,” said Nishchay Chadha, CEO of U.S.-based ACE Green Recycling, which has operations in India. McNamara advocates for training programs to help scrap workers transition to formal jobs, emphasizing that “formalization will really help drive safety and accountability.”

The global supply chain for critical minerals like lithium, nickel, and cobalt—essential for products from smartphones to electric cars—is largely controlled by China. India currently lacks operational mines for lithium and other key minerals, making effective recovery from used products increasingly important.

Chadha suggests India should take measured steps, noting that China prioritizes recycling as an integral part of the supply chain, even when it’s unprofitable on its own. “They also actually lose money on recycling, but they look at it as part of the whole puzzle where recycling is a critical part, and they’re looking at making money across the whole value chain,” he explained.

Despite challenges, industry leaders remain optimistic. “If the momentum that is there in India today continues, in my opinion, we can probably create five multibillion-dollar giants in this industry,” predicted Verma of Lohum Cleantech.

As India continues its clean energy transition, developing an efficient, environmentally sound battery recycling industry will be essential for reducing import dependence and supporting sustainable growth in the electric vehicle and renewable energy sectors.