Source: The post India needs fair battery recycling norms for growth has been created, based on the article “The missing link in India’s battery waste management” published in “The Hindu” on 5th August 2025. India needs fair battery recycling norms for growth.
UPSC Syllabus Topic: GS Paper 3- Environment Conservation
Context: India’s push toward decarbonisation has rapidly increased the demand for lithium batteries, driven by the growth of electric vehicles and renewable energy. However, without strong recycling mechanisms, this expansion risks significant environmental damage and economic losses. The article discusses how India’s Battery Waste Management Rules must evolve to support a sustainable circular economy.
For detailed information on Government notifies Battery Waste Management Rules, 2022 read this article here
India’s Battery Boom and Emerging Waste Crisis
- Rising Demand for Lithium Batteries: India’s lithium battery demand is projected to grow from 4 GWh in 2023 to 139 GWh by 2035. This surge is fueled by the expansion of electric vehicles (EVs) and battery energy storage systems (BESS) under India’s Net Zero goal.
- Environmental Risks of Improper Disposal: Disposal of lithium batteries without recycling leads to leakage of hazardous materials. In 2022 alone, lithium batteries made up 7,00,000 metric tonnes out of 1.6 million metric tonnes of e-waste.
- Need for Regulatory Response: To manage this crisis, the Battery Waste Management Rules (BWMR), 2022, were introduced. These aim to ensure environmentally safe disposal and promote recycling practices.
Challenges of Implementing EPR and Floor Pricing
- Role of Extended Producer Responsibility (EPR): The BWMR introduced EPR, where producers must ensure battery collection and recycling. Producers rely on authorised recyclers to meet their EPR targets and obtain EPR certificates.
- Inadequate EPR Floor Price: The floor price for EPR certificates is currently too low. This discourages proper investment in safe recycling infrastructure, technologies, and skilled labour.
- Economic Viability and Market Distortion: Low pricing drives out legitimate recyclers and incentivises informal or fraudulent actors. These players may dump waste or issue false certificates, similar to what occurred in India’s plastic waste sector.
- Strategic Risks from Import Dependency: Improper recycling hampers recovery of critical materials like lithium, nickel, and cobalt, increasing India’s foreign exchange losses—projected to cross $1 billion by 2030.
Need for a Fair and Transparent Pricing System
- Producer Resistance and Global Disparity: Large producers often evade environmental responsibilities in developing countries. They follow more lenient practices compared to those in developed nations.
- Affordability and Consumer Impact: Raising the EPR floor price does not necessarily increase consumer costs. Despite falling global metal prices, producers have not reduced product prices, showing capacity to absorb recycling expenses.
- Global Comparisons and Policy Reform: The UK charges nearly ₹600/kg for EV battery recycling, while India’s proposed rate is under one-fourth—even after adjusting for purchasing power. India needs globally comparable pricing based on real recycling costs.
Strengthening Compliance and Formalising Informal Sector
- Need for Better Enforcement: India must digitise EPR certificate tracking, enforce stricter audits, and impose penalties for fraud. This will improve transparency and accountability in recycling.
- Integrating Informal Recyclers: Training and regulatory support for informal recyclers can reduce unsafe practices and expand recycling capacity, turning a liability into a growth opportunity.
- Strategic and Economic Priority: Battery recycling reform is not only about environmental safety—it is a strategic need. With proper reforms, battery waste can fuel green growth and support India’s circular economy ambitions.
Question for practice:
Discuss the emerging challenges and opportunities in battery recycling in India.
