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India Plans to Aggressively Tap Into The Li-Ion Battery Sector

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India will have a massive demand for lithium-ion batteries, with rising demand for electric vehicles given increasing climate concerns. These batteries comprise more than 40% of the value of lithium and cobalt, both of which are not found in India. Hence the country is trying to salvage some of the raw materials by recycling the used lithium-ion batteries which will increase in number once India electrifies its fleet. The potential of lithium-ion batteries in India from 2022 to 2030 is estimated to be ~600 GWh across segments, according to a NITI Aayog report. It is expected that ~128 GWh of the recycling volume would come from these batteries’ deployment by 2030 and electric vehicles are estimated to contribute about 50% of this.

India has announced its intent to go carbon-neutral by 2070 and hence there is a lot on its plate when it comes to implementing the right policies and making things work in the correct direction if the country wants to achieve this target. India has already allocated 50 GWh of manufacturing capacity for advanced chemistry cells under its PLI scheme. The government is also targeting to become atma-nirbhar (self-reliant) in terms of EV batteries by 2025. In its upcoming union budget, the government is expected to announce a policy for recycling lithium-ion batteries, in order to encourage faster adoption of EVs in our country. This policy will come with government incentives and the Centre is expected to allocate ~Rs.3,500 crore for the scheme for a period of three years. Also, the battery recycling business is highly capital-intensive, and hence these incentives will be needed to attract more investments into the business. The policy will focus on cluster-based recycling units, located near the manufacturing factories to reduce transportation costs. The country is also inviting foreign investments into the Indian battery recycling business.

Also, read India’s Action Plan for EV Charging Stations across the Nation

As EV mobility picks up in India, there will be a rising demand for new batteries as well as recycling old ones. If not done mindfully, it may result in further filling up landfills. The policy is suggesting penalizing discarding the used batteries in landfills, providing incentives to customers to return batteries, and issuing a separate license for handling lithium-ion batteries from electronic waste. All these policy recommendations would help India have a complete battery supply chain from domestic cell manufacturing to recycling. The country is on track to establish itself as a major player in the global EV infrastructure.


Sneha Shah

I am Sneha, the Editor-in-chief for the Blog. We would be glad to receive suggestions, inputs & comments on GWI from you guys to keep it going! You can contact me for consultancy/trade inquires by writing an email to

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