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Introduction

India’s ambitious transition to electric mobility and renewable energy is driving an exponential surge in lithium battery use. PM E-DRIVE Scheme launched in 2024, aims to boost EV adoption in India, develop charging infrastructure, and strengthen the domestic EV manufacturing ecosystem. However, the absence of a robust battery waste management system has led to mounting environmental hazards and economic inefficiencies, threatening both the ecological balance and the vision of a circular economy.

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Key Issues in Battery Waste Management in India

• Rapidly Growing Volume of Lithium Battery Waste: The spike in EV and renewable energy adoption is leading to a disproportionate rise in lithium battery waste.
  Eg: Lithium batteries made up 7,00,000 tonnes of the 1.6 million metric tonnes of e-waste generated in India in 2022.
• Environmental Hazards from Improper Disposal: Leaching of toxic substances into soil and water poses severe ecological risks.
• Low EPR Floor Price Undermining Formal Recycling: Recyclers are not adequately compensated, making legitimate recycling financially unviable.
  Eg: India’s EPR floor price is less than 25% of the UK’s ₹600/kg rate, even after adjusting for purchasing power.
• Flourishing Informal and Fraudulent Recycling Sector: Unscrupulous recyclers issue fake EPR certificates or dump hazardous waste illegally.
  Eg: This mirrors earlier failures in India’s plastic waste management, where fraudulent recycling claims became rampant.
• Resistance from Large Manufacturers: Global corporations apply dual standards, evading environmental responsibilities in developing countries.
• Risk of Foreign Exchange and Economic Loss: Inefficient recycling raises import dependency for rare minerals like lithium, nickel, and cobalt.
  Eg: Experts estimate over $1 billion in forex losses by 2030 due to poor recycling infrastructure.
• Weak Monitoring and Regulatory Enforcement: Inadequate auditing and poor tracking systems allow loopholes and discourage compliance.
  

Measures to Ensure Sustainable Recycling and Promote Circular Economy

• Recalibrate EPR Floor Price to Reflect Real Costs: A fair and globally comparable EPR price can sustain recyclers and curb informal practices.
  Eg: UK’s recycling rate is ~₹600/kg for EV batteries, compared to a fraction of that being considered in India.
• Ensure Mandatory EPR Audits and Digital Tracking: Introduce real-time digital monitoring and independent audits for EPR compliance.
  Eg: Audits and digital certification can hold recyclers accountable and deter fraudulent certificate issuance.
• Integrate Informal Sector into Formal Recycling Chain: Formalisation, training, and regulatory support can reduce unsafe practices and expand capacity.
• Encourage Recovery of Critical Minerals: Promote advanced recycling methods to recover rare earth elements and reduce import dependency.
  Eg: Efficient recovery of lithium, cobalt, and nickel supports economic security and green technology value chains.
• Promote Industry-Government Dialogue for Pricing Structure: Collaborative consultation can help align recycling incentives and ecosystem viability.
  Eg: A constructive dialogue among producers, recyclers, and policymakers is needed to fix realistic EPR prices.
• Impose Penalties for Non-Compliance and Fraud: Strict deterrence mechanisms are necessary to enforce environmental obligations.
  Eg: India must urgently impose stringent penalties for falsified certificates and illegal dumping.
• Decouple Recycling Cost from Consumer Price: Manufacturers can absorb higher EPR costs without affecting affordability.

Conclusion

As India races toward decarbonisation, battery waste management must not be an afterthought. These ambitious targets align with India’s net-zero emissions by 2070 under ‘Panchamrit Targets’. By ensuring a fair EPR regime, strengthening enforcement, and integrating informal recyclers, India can turn this challenge into an opportunity for green industrial growth, resource efficiency, and a resilient circular economy.

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