Numerous EV ecosystem stakeholders have constantly reiterated that India's EV market is on the cusp of significant growth. This also means that recycling lithium-ion batteries is crucial for circularity and sustainability. However, achieving this requires robust policies and government support to create a conducive environment for recycling.
Gaurav Dolwani, Founder and CEO of LICO, discusses India's significant growth in the electric vehicle (EV) sector and the crucial need for robust recycling infrastructure to support this expansion. With the EV market predicted to rise by 250% over the next three to four years, the importance of sustainable practices, particularly in battery recycling, cannot be overstated.
EVs & The Recycling Challenge
India's push towards electric vehicles has seen a considerable increase in EVs on the roads despite initial slow momentum from the government and sector. This shift extends beyond EVs, including laptops, smartphones, and other consumer electronics, all reliant on lithium-ion batteries. However, the country lacks a comprehensive policy to manage these batteries once they reach the end of their life.
'While there is a nascent policy on battery recycling, it lacks the robustness needed to guide citizens on proper disposal methods,' Gaurav Dolwani explains. 'OEMs are beginning to scrap batteries, but the critical step is to recycle these batteries effectively.'
Advanced Recycling Techniques & Second Life For Batteries
LICO's approach involves assessing the health of end-of-life batteries from various sources, including EVs and consumer electronics. Batteries with remaining life are refurbished and repurposed for secondary uses, such as powering LED bulbs, power banks, and electric cycles. Those beyond repair are recycled to extract valuable materials, such as lithium, graphite, and nickel, reducing dependence on imports.
India currently relies heavily on imported lithium and graphite, primarily from China. By recycling batteries, LICO aims to recover these critical minerals domestically, reducing forex outflows and conserving essential resources. 'Recycling can help create a circular economy for batteries, ensuring that critical minerals are not wasted,' Dolwani emphasises.
Business Landscape
For the recycling industry to thrive, more companies need to enter the market, and existing players need to expand their capacities. 'With our 2nd facility in Bengaluru by October 2024, our capacity will expand up to 25,000 tonnes annually by 2026. There are some more advancements in the process that will be used in Bengaluru to ensure that our Black Mass can achieve even higher purity levels. In the long term, LICO is finalising its technology partner from abroad to build a Hydrometallurgy plant in India where we will be able to recover metal salts from the back mass we are currently producing. The objective is to recover metal salts at battery grade purity to give back to anode and cathode manufacturers and close the loop', he stated. However, Dolwani stresses the need for government support in the form of incentives similar to those seen in Europe.
'Recycling is capital-intensive, and setting up labs and facilities requires significant investment,' Dolwani says. 'Incentives such as lower interest rates could stimulate more players to enter the market, as seen in Europe.'
LICO collaborates with major OEMs, including Tata Motors and MG Motors, to ensure batteries are recycled responsibly. The company also advocates for policies encouraging safe transportation and handling of high-voltage batteries, which remain a challenge in India's informal economy.
LICO is expanding its operations with a new facility in Bangalore, which will become one of India's largest lithium-ion battery recyclers. The new facility is set to become operational by October 2024, and by 2026, LICO will have a combined capacity of processing 25,000 tonnes annually.
The plant will focus on regional processing to reduce transportation risks and costs, operating on a hub-and-spoke model.
'India needs to be future-ready to ensure that as EV adoption grows, we have the infrastructure to manage the end-of-life batteries efficiently,' Dolwani concludes. 'With the right support, we can build a sustainable and self-reliant battery ecosystem.'