Missing Link in India’s Battery Waste Management

Syllabus: GS3/ Energy; Environment

Context

• As India strides in promoting green mobility and solar adoption, the infrastructure and policy framework for handling end-of-life batteries remains fragmented and inadequate.

India’s EV and Energy Storage Boom

• India is undergoing rapid electrification, driven by decarbonisation goals and expanding electric vehicle (EV) adoption. 
• Lithium battery demand is projected to soar from 4 GWh in 2023 to nearly 139 GWh by 2035, propelled by both EVs and Battery Energy Storage Systems (BESS) in the renewable energy sector.

Emerging Battery Waste Crisis

• Lithium batteries alone made up 700,000 metric tonnes of India’s 1.6 million tonnes of e-waste in 2022, and projected to generate over 2 million tonnes of lithium-ion battery waste by 2030.
• These batteries, if not properly recycled or disposed of, pose serious risks like:
  • Toxic Leachates: Heavy metals like lithium, cobalt, and nickel can contaminate soil and groundwater.
  • Fire Hazards: Improperly stored batteries are prone to thermal runaway and explosions.
  • Air Pollution: Informal recycling often involves burning or acid leaching, releasing harmful fumes.
• A large portion of battery waste ends up in unregulated informal sectors, where workers lack protective gear and environmental safeguards are absent, despite these dangers.

Related Efforts & Initiatives

• Battery Waste Management Rules (BWMR), 2022: It mandates Extended Producer Responsibility (EPR) for battery manufacturers.
  • It covers collection, recycling, and reuse of all battery types, including lithium-ion and lead-acid.
• Extended Producer Responsibility (EPR): It mandates battery producers to ensure safe collection and recycling, usually via authorised recyclers.
  • In return, recyclers provide EPR certificates that validate the recycling effort.
  • A critical component of this framework is the EPR floor price—the minimum amount producers need to pay recyclers per kilogram of waste recycled.
• Battery Energy Storage Systems (BESS): ₹5,400 crore approved for 30 GWh of BESS to stabilize the grid and store renewable energy.
  • The Central Electricity Authority recommends co-locating BESS with solar projects to improve grid reliability.
• National Programme on Advanced Chemistry Cell (ACC) Battery Storage: ₹18,100 crore Production Linked Incentive (PLI) scheme to boost domestic battery manufacturing.
  • It focuses on lithium-ion and alternative chemistries to reduce import dependence.
• National Data and Analytics Platform (NDAP): It aims to improve transparency and decision-making by integrating battery production, usage, and recycling data.
  • It supports policy formulation and monitoring of EPR compliance.

Policy Gaps and Challenges

• Despite the introduction of the Battery Waste Management Rules (2022), several gaps persist:
  • Weak enforcement of Extended Producer Responsibility (EPR) mandates;
  • Limited reverse logistics for collecting used batteries from consumers;
  • Insufficient recycling infrastructure, especially outside urban centers;
  • Low consumer awareness about safe disposal practices;
  • Fragmented regulations that overlook non-lithium chemistries like lead-acid and nickel-cadmium;
• An Unrealistic EPR Floor Price: The current EPR floor price is too low, making it economically unsustainable for formal recyclers to operate effectively.
  • When recyclers aren’t adequately compensated, it opens the door for informal operators who issue false certificates or illegally dump toxic waste, repeating the failures seen in plastic waste management.
• Economic Stakes: Inefficient recycling doesn’t just harm the environment—it has significant financial implications.
  • By 2030, India could lose over $1 billion in foreign exchange due to unrecovered battery materials.
• No Cost Burden on Consumers: Raising the EPR floor price does not necessarily increase end-user prices.
  • Manufacturers have not passed these benefits to consumers, suggesting that OEMs can absorb higher recycling costs, despite a drop in global metal prices.

Policy Recommendations

• Recalibrate the EPR Floor Price: Set a fair, market-aligned floor price that covers full recycling costs—from collection to material recovery—and adjusts as the market matures.
• Strengthen Enforcement: 
  • Implement audits to prevent fraudulent certificates;
  • Digitise certificate issuance and tracking;
  • Enforce strict penalties for non-compliance.
• Integrate the Informal Sector:
  • Train and certify informal recyclers;
  • Provide regulatory and logistical support;
  • Expand recycling capacity while minimising hazardous practices.

Learning from Global Practices

• International benchmarks highlight India’s pricing gap:
  • UK’s EPR floor price for EV batteries: ~₹600/kg;
  • Proposed floor price in India: Less than a fourth of that.
• India’s pricing remains unviable for sustainable operations, even after adjusting for purchasing power.
  • A globally comparable price that reflects real costs is essential for building a robust battery recycling ecosystem.
• Countries like South Korea and the EU have implemented robust battery stewardship programs that India can learn from.

Source: TH