India Could Unlock USD 3.5 Bn Circular Battery Economy By 2030 With Strong Policy Support: ICEA-Accenture

(MENAFN- KNN India) New Delhi, July 10 (KNN) India has the potential to build a USD 3.5 billion circular battery economy by 2030, driven by its rapidly growing demand for electric vehicles (EVs), consumer electronics, and energy storage systems, according to a report released Wednesday by the India Cellular and Electronics Association (ICEA) and Accenture.

Despite this potential, the report highlights a concerning gap: only 1 percent of end-of-life lithium-ion batteries (LiBs) in India are currently recycled into reusable materials, with up to 80 percent of the collected batteries passing through unregulated informal channels.

This results in 45 percent of batteries failing to reach formal recycling facilities and 2–8 percent failing quality checks due to improper handling, underscoring an urgent need for system-wide reform.

The report provides a strategic blueprint for establishing a domestic recycling ecosystem, estimating that effective policy interventions could generate USD 3.5 billion in economic value, create 27,000 to 41,000 green jobs, reduce 28 to 75 kilotonnes of CO2 emissions, and save 5.7 billion gallons of water by 2030-enough to meet the needs of a city of 500,000.

Without meaningful interventions, however, revenue generation from battery recycling could remain limited to USD 500 million–USD 1 billion between 2025 and 2030.

“Battery recycling sits at the intersection of India's environmental priorities and its strategic autonomy in critical minerals,” said Pankaj Mohindroo, Chairman, ICEA.“With the right policy support and entrepreneurial drive, India can unlock this economic opportunity, reduce import dependencies, and emerge as a global leader in clean technologies.”

Key recommendations in the report include: scaling domestic Li-ion battery (LiB) cell manufacturing and recycling capacity, expanding the PLI scheme to cover battery recycling initiatives, enhancing reverse logistics and scrap collection infrastructure, and facilitating trade in black mass and LiB scrap under a regulated framework.

The report notes that black mass-the shredded remains of end-of-life batteries-remains largely unregulated in India, leading to significant material loss through exports.

In contrast, China has banned black mass exports, retaining valuable critical minerals for domestic reuse.

Sunita Verma, Scientist-G and Group Coordinator, Ministry of Electronics and IT (MeitY), affirmed government support for formalising battery recycling through indigenous technology and industry capacity-building.

“The Centre of Excellence at C-MET Hyderabad is already supporting over 25 industries in lithium-ion battery recycling,” she added.

The report also marked the launch of the Centre of Sustainability for Pure Earth, aimed at addressing broader sustainability challenges through innovation and collaboration.

(KNN Bureau)

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