INDIA LITHIUM-ION BATTERY RECYCLING MARKET

India lithium-ion battery recycling market size is forecast to witness a substantial CAGR of 41.1% during the forecast years 2025 and 2032 propelled by increasing EV adoption coupled with favorable government policies and rising lithium-ion battery demand.

Major Market Drivers and Emerging Trends

The India lithium ion battery recycling market growth is mainly supported by the rising EVs adoption. In 2023, India recorded rising EV sales reaching 1.5 million units driven by strategic policy support for EV manufacturing and adoption. The Indian government allocated USD 3.1 billion under its PLI Scheme aimed at scaling up domestic capabilities in automotive manufacturing notably within the EV sector. The scheme rewards companies with financial benefits for meeting performance metrics like higher revenue and output. The initiative is designed to boost domestic supply chain for advanced automotive by incentivizing industry investment. By combining buyer incentives with infrastructure development, the government aims to accelerate the electric vehicles adoption and reduce emissions within the auto sector.

Rising EV sales are projected to lead to a rising battery waste over the coming years. India has implemented regulatory measures under the Battery Waste Management Rules which obligates manufacturers and importers to manage the batteries lifecycle through collection and recycling. Battery recycling will become more significant with India EV industry expanding by 250 percent and energy storage reaches 42 GW in 2032 which ensures circular processes provide access to essential resources. Recovering lithium from used batteries is significantly more sustainable as it cuts environmental damage by tenfold.

The increasing demand for lithium ion battery is further fueling market growth. The sector is evolving owing to innovations and expanding infrastructure. Consumer electronics like smartphones have become major demand drivers for li ion batteries while falling battery prices have enhanced their affordability and adoption across industries. This considerable price decrease stems from technological innovation along with streamlined production methods and the cost efficiencies gained from larger scale manufacturing. Lower prices relative to global benchmarks have been further supported by modern manufacturing capabilities and abundant skilled labor in India.

India is currently highly dependent on imported EV batteries while struggling with maintaining a steady raw material supply. The government is actively supporting local production through programs like the PLI schemes and FAME II to lessen reliance on imports while enhancing economic growth. It is also initiating a pilot project aimed at collecting and recycling used EV batteries to address sustainability concerns. By recovering critical materials recycling minimizes environmental impact and supports the transition to a circular economy.

In an effort to acquire critical resources essential to the shift toward clean energy India will offer incentives to recycle strategically important minerals like lithium. These minerals are deemed critical for clean energy ambitions in India and its goal to reach net zero emissions. The initiative focuses on growing lithium ion battery recycling capacity with plans to surpass the current limit of 75,000 MT annually. The government has committed 15 billion Indian rupees to mineral recycling which is expected to drive industrial growth.

With proper government backing and innovation the market is set to transition from its early stages into a significant industry to address future needs while reducing its ecological impact. Developing a robust recycling ecosystem will be essential in harnessing these opportunities while addressing present obstacles.

Furthermore NITI Aayog worked alongside the UK government to develop a strategic roadmap aimed at advancing the battery recycling industry. The roadmap provides a framework for building a circular recycling system which focuses on setting up collection hubs and encouraging collaboration among stakeholders. Through these efforts India is reaffirming its commitment to establishing a circular economy while addressing the environmental challenges of the EV transition.

Despite growth the India lithium ion battery recycling market remains unstructured attributed to the complex recycling process from battery collection to material recovery which requires more defined responsibilities for each phase. Setting up a comprehensive national infrastructure for retrieving used batteries from EV makers and consumers is critical. An ideal system would be transparent and motivate responsible disposal behavior. Integration with established waste management networks and digital solutions can also improve efficiency.

A robust domestic supply chain for recycled battery components will reduce import dependency and advancing sustainable growth. Collaboration among recyclers and other involved parties is essential to setting standards while ensuring recycled materials meet the requirements for new battery applications. A more robust supply chain can be established with the support of supportive government laws that encourage batteries to contain recycled materials. Moreover the industry needs professionals with specialized knowledge in managing hazardous materials while adhering to strict safety standards. Establishing comprehensive training will ensure the workforce has the necessary expertise to support the industry growth.

Based on industry the market is classified into automotive and other sectors. EV lithium ion batteries are recycled after their first life with most providers able to reuse them for additional life cycles. Automotive battery recycling is still in its early stages largely because EV batteries are highly durable and long lasting. However significant growth in recycling technologies is expected as landfilling these batteries is neither economically nor environmentally viable. Lithium ion batteries are commonly used in electric vehicles even though their chemistry tends to differ from the ones in consumer electronics. Research is actively working to bring down costs while resolving safety issues related to potential faults. The non automotive segment involves industries like consumer electronics among others with li-ion batteries used in portable devices like smartphones owing to the superior energy density compared to other energy storage. Additionally they offer excellent energy efficiency and strong performance at high temperatures along with minimal self discharge. Most lithium ion battery components are recyclable but the expense involved in material recovery is still a major hurdle for the sector.

Based on recycling process, hydrometallurgical methods are significant in industrial applications because they efficiently retrieve precious metals which makes them a preferred technique. Pyrometallurgical methods are also important because they provide efficient ways to extract metals for lithium ion batteries while supporting waste minimization and recovering valuable resources.

Top Market Players

The biggest recycling companies for lithium ion battery in India are Exigo Recycling, RecycleKaro, Lohum Cleantech, Attero Recycling among others.

Key Developments

• • In 2024 LICO Materials inaugurated a new facility for battery recycling in Bengaluru and revealed plans to make Rs 250 crore investment in developing downstream hydrometallurgy facility in the next years.
  • In 2024 BatX Energies inaugurated a facility for recycling lithium batteries and extracting valuable minerals in Uttar Pradesh.

Segments covered in the Report:

The India Lithium-ion Battery Recycling Market has been segmented on the basis of Industry, Recycling Process and Regions. Based on Industry, the market is segmented into Automotive and Non-Automotive. The Non-Automotive segment is further segmented into Industrial, Power, Marine, Consumer Electronics, and Other Sources. Based on Recycling Process, the market is segmented into Hydrometallurgical, Pyrometallurgy, and Physical/Mechanical.

Market Segmentation

India Lithium-ion Battery Recycling Market by Industry

• • Automotive
  • Non-automotive
    • Industrial
    • Power
    • Marine
    • Consumer electronics
    • Other sources

India Lithium-ion Battery Recycling Market by Recycling Process

• • Hydrometallurgical
  • Pyrometallurgy
  • Physical/mechanical

India Lithium-ion Battery Recycling Market Leading players

• • Exigo Recycling
  • RecycleKaro
  • Lohum Cleantech
  • Attero Recycling