India Battery Recycling: Industry Poised for Growth Amid Policy Push and Technological Advances

India’s battery recycling sector is entering a critical growth phase, driven by strong policy incentives, regulatory reforms, and rapid technological advancements, according to a new market report by IMARC Group.

The study valued India’s battery recycling market at USD 554.4 million in 2024, projecting it to more than double to USD 1,304.1 million by 2033, at a CAGR of 8.93% from 2025 to 2033. The growth reflects India’s commitment to a circular battery ecosystem as part of its broader clean energy ambitions.

The Ministry of Mines, under the National Centre for Mineral Processing and Management (NCMM), has launched a ₹1,500 crore incentive scheme to support recyclers of e-waste, lithium-ion batteries (LiB), and end-of-life vehicles (ELVs). Additionally, the removal of customs duty on waste and scrap in 2024 aims to improve feedstock availability for recyclers.

However, the industry faces challenges amid a shift toward Lithium Iron Phosphate (LFP) batteries, stricter international waste regulations, and domestic policy adjustments, leading to feedstock shortages and operational difficulties, particularly for smaller players.

“India stands at a crucial juncture in building a circular battery economy,” said Debmalya Sen, President, India Energy Storage Alliance (IESA). “Our recommendations aim to streamline regulations, incentivize innovation, and foster collaboration between industry and policymakers, addressing current challenges while unlocking new growth opportunities.”

Key Industry Recommendations
The India Energy Storage Alliance (IESA) has submitted detailed policy recommendations to accelerate India’s battery recycling ecosystem. Shreya Sikarwar, Recycling Specialist at IESA, highlighted the importance of eco-design, robust traceability, and standardized quality benchmarks. She added, “By integrating informal sector players and embracing global best practices, India can lead Asia in the responsible recovery of critical minerals and support the next wave of clean energy manufacturing.”

The recommendations call for:

• Clear definitions and responsibilities under the Battery Waste Management Rules, including recognizing second-life battery remanufacturers as producers.
• Introduction of an Eco-Mark certification to encourage recyclable battery designs.
• Adoption of international safety standards such as UL 1974 and IEC 62933 for repurposed batteries.
• Sustainability certifications for recyclers, standardized black mass management, and accredited labs to ensure the quality of recovered materials.
• Strengthened traceability frameworks, including unique digital IDs and blockchain transparency.
• Rationalized taxation, including reduced GST on scrap, black mass, and second-life products.
• Enhanced compliance, financing through green credits and carbon markets, and consumer awareness campaigns.

IESA emphasized that these measures would create a robust, transparent, and sustainable battery recycling ecosystem, supporting India’s circular economy, clean energy goals, and securing critical mineral supply chains for long-term growth.