By: ICN Bureau
Last updated : November 21, 2025 10:19 am
The Ministry of Mines has rolled out a Rs. 1,500 crore incentive scheme supporting recyclers of e-waste, lithium-ion batteries, and end-of-life vehicle
India’s battery recycling industry is on the verge of a major breakthrough, driven by aggressive policy incentives, regulatory shifts, and rapid technological advancements.
According to the global consulting firm IMARC Group, the market was valued at US$ 554.4 million in 2024 and is projected to more than double to US$ 1.3 billion by 2033, growing at a robust 8.93% CAGR. The surge reflects India’s commitment to building a sustainable, circular battery ecosystem in line with its clean energy ambitions.
The Indian government is fuelling this momentum. Under the National Centre for Mineral Materials (NCMM), the Ministry of Mines has rolled out a Rs. 1,500 crore incentive scheme supporting recyclers of e-waste, lithium-ion batteries, and end-of-life vehicles. In addition, customs duty on waste and scrap was removed in 2024 to improve feedstock availability.
Yet challenges loom. The industry faces feedstock shortages, stricter international waste rules, and a shift toward Lithium Iron Phosphate (LFP) batteries, creating hurdles particularly for smaller players. Despite these headwinds, experts say India’s long-term prospects remain strong if technology and policy evolve in tandem.
"India stands at a crucial juncture in building a circular battery economy,” said Debmalya Sen, President of the India Energy Storage Alliance (IESA). “Our recommendations aim to streamline regulations, incentivize innovation, and foster collaboration between industry and policymakers. This will address current challenges and unlock sustainable growth in the sector.”
IESA has submitted a comprehensive roadmap to accelerate India’s battery recycling ecosystem.
Shreya Sikarwar, Recycling Specialist at IESA, emphasized, “To scale battery recycling, India must focus on eco-design, robust traceability, and standardized quality benchmarks. By integrating informal sector players and adopting global best practices, India can lead Asia in efficient recovery of critical minerals and drive the next wave of clean energy manufacturing.”
IESA has called for clear definitions of roles under the Battery Waste Management Rules, including recognizing remanufacturers of second-life batteries as producers and establishing precise criteria for when a battery qualifies as “second-life.”
The alliance recommends introducing an “Eco-Mark” certification to promote batteries designed for easier recycling, safe dismantling, and the use of sustainable materials such as water-dispersible binders and recyclable fixtures.
It also wants that recyclers should adopt sustainability certifications and measurable benchmarks for energy, water, emissions, and recycled content, ensuring compatibility with emerging battery chemistries and domestic manufacturing capabilities.
These measures aim to create a transparent, robust, and sustainable battery recycling ecosystem, advancing India’s circular economy ambitions, securing critical mineral supply chains, and supporting its clean energy targets.