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With government mandates and climate change triggering across the globe, the EV battery space has gained excitement and momentum in the last couple of years. Lithium-ion batteries (LIBs) that are readily used in EVs, are also widely present in other gadgets such as laptops, and smartphones which are hazardous waste material if not recycled well.
As pointed out in a recent report, 100-120 GWh of electric vehicle batteries will retire by 2030, which is almost equivalent to the annual battery production. This is not only alarming but has attracted a lot of industry concerns. The demand for LIB in EVs as well as in other sectors for large-scale integration of renewables is expected to grow globally from USD 27.30 billion in 2021 to USD 154.90 billion in 2028. The transition from a fuel-intensive to a mineral-intensive energy system has increased demand.
For India’s developing country status, we need to contemplate the sheer capacity of spent EV batteries. Not only does India needs a resource-efficient shift towards a sustainable battery ecosystem, but India also needs to incorporate progressive strategies like creating a circular economy and implementing a cross-connected battery supply chain, through the recycling of critical raw materials for elevating the battery manufacturing ability.
The Production Linked Incentive was announced recently for the production of the latest and modern batteries which are going to be not just technologically agnostic in nature but also form the footing of superior energy density and longer life cycle. The policy is expected to propel the production of a large number of batteries domestically and prompt greater heterogeneity in the batteries specially used for EVs. With these used batteries reaching the last phase of their lives and becoming waste, is when the need for technology-driven and effective strategies comes to the brim. The treatment of these waste batteries and recycling will bring in the sustainability of mobility in the true sense.
How can we reach the benchmark for Recycling of Batteries?
- Advanced Recycling Technology
The Indian battery manufacturing ecosystem is still in a nascent stage and leaves room for opportunities and obstacles for developing a coherent ecosystem for sustainable mobility and unfolding as the ultimate hub for the manufacturing and recycling of batteries. Garnering investments and creating roadmaps for upgrading technological prowess and disciplines for improving the recovery rate, will be the tipping point in the battery ecosystem.
To further stimulate this objective, the government’s initiative in pilot projects and boosting research and development in the manufacturing and recycling of batteries is paramount.
- Localisation of Recycling Batteries
Localisation of recycling activities can further add to the sustainability objective. While setting up multiple recycling plants for multiple batteries can be extravagant, developing an ecosystem with uniform and strategic arrangements for both manufacturing and recycling for all kinds of batteries, will be highly economical. As reported by JMK Research, recycling will be a remarkable industry with an estimated valuation of $1000 million, hence, a common plant for both will eliminate the need for long-term logistics thereby bringing down the cost.
- Circular Economy with Recycling
Accounting for 30-50% of EV’s life cycle emission, the production of lithium-ion batteries is resource intensive owing to the ample amount of water being used in the extraction of minerals like lithium and cobalt. The idea of the circular economy initiative is to reduce the detrimental environmental effects of batteries and the dependency on raw materials. The circular economy basically covers the second-life applications and recycling of crucial materials. Going beyond the preservation of raw materials, recycling the batteries can also ease toxicity and diminish the risks of contamination surfacing from landfill dumping.
The lithium-ion batteries recycling market globally is projected to increase from USD 4.6 billion9 in 2021 to USD 22.8 billion by 2030, growing ~20% annually. In India, the EV batteries recycling market is still at an embryonic stage and is estimated to be around 22-23 GWh by 2030, which is a USD 1000 million10 opportunity.
Government Approaches
Taking cognizance of sustainability for the mobility domain, the Government of India recently articulated the Battery Waste Management Rule (BWMR) 2022 to secure a more sustainable ecosystem (circular economy) via the re-use and recycling of used EV batteries and the provision of Extended Producer Responsibility (EPR) that maps key responsibilities.
To address the challenges of supply vulnerability and material criticality, in the last monsoon session of the Parliament the Ministry of Heavy Industries informed the House that the Union government had been furnishing special incentives through Production Linked Subsidy for the promotion of Advanced Chemistry Cells (ACC) for EVs which includes lithium-ion batteries. The vision is to strengthen domestic battery manufacturing capabilities, via a planned outlay of Rs 18,100 crore for 5-years. The battery-swapping policy is also another right step in the direction.
Bringing Recycling Initiatives to Life
The end goal for the stakeholders involved in the batteries recycling is to reduce the quantum and effect of EV battery waste by reusing and recycling old batteries. Nunam, a Bengaluru-based battery startup, reuses the discarded batteries from EVs for other catering electricity needs for rural and low-income areas. From lighting up the carts on the streets to serving some of the energy needs of a BSNL Telecom Tower at Jayanagar in Bengaluru, the start-up has received funding from the Government of Karnataka and further support from research and renewable energy organisations such as TERI (The Energy and Research Institute) and the Selco Foundation.
Taking up the recycling domain a notch higher and solidifying the EV ecosystem, MG Motors is leading the way in EV battery recycling. In collaboration with Attero, MG Motors is on a mission to create a circular and sustainable EV economy in India. Bringing in a winning strategy, MG has recycled the battery and the metal extracts, and other materials to develop new batteries. Boosting the principles of sustainable and greener mobility, MG has extended its technological capabilities to strengthen the EV ecosystem.
Recycling is the Way Forward
For ensuring a low-carbon future for India, support is required from all the relevant stakeholders of the battery value chain for a comprehensive framework and innovative business models along with the right infrastructure development and investments in technological advances. To accelerate and bolster India’s EV transition, India also needs an effective collaboration from the academia-industry and contribution to develop a robust research and development ecosystem of the battery supply chain disciplines to address the existing technical and commercial challenges.