Comments
Given that the growing demand for Li-ion batteries is expected to touch 235 gigawatt hours (GWh) by 2030, recycling has emerged as a critical focus area to secure the supply of raw materials for cells and reduce dependence on imports
According to a report by Avendus Capital, the demand for Li-ion batteries has led to a significant imbalance in the demand and supply of key raw materials such as lithium, nickel, cobalt, and manganese.
Extracting materials through recycling Li-ion batteries is more sustainable than mining. Batteries account for 30-50 per cent of the cost of an electric vehicle, it added.
The report projects the domestic battery recycling market to grow from $0.1 billion in FY23 to $1 billion by FY30.
Low-carbon choice
Li-ion batteries are likely to be at the centre of India’s targeted move to a low-carbon economy, given their use in EVs to reduce air pollution and as storage solutions for renewable energy sources, Avendus Capital said.
Battery recycling becomes critical in India as there is a lack of key raw materials. However, a significant growth in the recycling market is expected only in the latter half of the current decade, with sizeable volumes of used batteries currently going into vehicles entering the market, it added.
“Leveraging a larger global opportunity and repurposing opportunity will be critical in the near term. Repurposing is going to play a key role in extending the life of batteries, increasing battery usage, and increasing the value proposition for recycling companies,” it added.
Limited availability of key battery materials like lithium, nickel, and cobalt further bolsters the case for recycling. Besides, the concentration of raw materials and processing facilities in a few countries makes it important to invest in battery recycling.
Government push
The Indian government has taken steps to identify reserves for Li-on battery materials in India and establish partnerships with mineral-rich nations for continuous supply of mineral ores and concentrates.
However, a strong recycling ecosystem can help supply a certain proportion of key materials with limited investment and dependency on other countries, the report suggested.
The government has taken the right approach with the introduction of Battery Waste Management Rules in August 2022, it said.
“Allowing the export of battery scrap to established companies such as Lohum is another step that will help in creating the provision of key materials in India. With the PLI scheme set to drive battery manufacturing in the coming years, the recycling market will play a strategic role in reducing the dependence on virgin raw materials and imports,” the report added.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.