India Lithium-Ion Battery Recycling Market Outlook to 2028

India Lithium-Ion Battery Recycling Market Overview

• The India Lithium-Ion Battery Recycling Market is a growing industry, driven by the increasing demand for electric vehicles and renewable energy storage. The Global Lithium-Ion Battery Recycling Market was valued at USD 7.01 billion in 2023. This growth is largely driven by the rising awareness of environmental issues and government initiatives promoting sustainable practices.
• Key players in the India lithium-ion battery recycling market include Attero Recycling Pvt. Ltd., Umicore N.V., Gravita India Ltd., and Lithion Recycling Inc. These companies dominate the market due to their extensive materials technology, focusing on battery recycling and materials recovery.
• In 2024, a notable development in the Indian lithium-ion battery recycling market, when the Indian government announced a new policy aimed at increasing the recycling rate of lithium-ion batteries to 30% by 2028. This policy includes financial incentives for companies investing in recycling infrastructure and stricter regulations on the disposal of used batteries.
• Maharashtra emerges as a dominant state in the Indian lithium-ion battery recycling market, due to its well-established industrial base, strong regulatory framework, and significant investments in recycling infrastructure. Mumbai, being the financial hub, attracts substantial private and public sector investments, further bolstering the market.

India Lithium-Ion Battery Recycling Market Segmentation

The India lithium-ion battery recycling market can be segmented by various factors like battery chemistry, end-user and region.

By Battery Chemistry: India lithium-ion battery recycling market is segmented by battery chemistry into lithium cobalt oxide (LCO), lithium iron phosphate (LFP), and lithium nickel manganese cobalt oxide (NMC). In 2023, the LCO segment dominated the market by its widespread use in consumer electronics. The dominance of LCO is due to its high energy density and stable performance, making it a popular choice for smartphones and laptops.

By End-User: The India lithium-ion battery recycling market is segmented by end-user industry into automotive, consumer electronics, and industrial applications. In 2023, the consumer electronics segment held a dominant market due to the proliferation of smartphones, laptops, and other portable devices has led to a surge in lithium-ion battery consumption.

By Region: The India lithium-ion battery recycling market is segmented by region into North, South, East, and West. In 2023, the Western region, particularly, dominated the market with due to its advanced industrial infrastructure, regulatory support, and significant investments in recycling technologies. The state's strategic location and developed logistics network facilitate the collection and transportation of used batteries, enhancing the efficiency of recycling operations.

India Lithium-Ion Battery Recycling Competitive Landscape

• In 2023, Gravita India Ltd. launched a new initiative to recycle lithium-ion batteries from electric vehicles in collaboration with leading automotive manufacturers. This initiative aims to process 10,000 metric tons of EV batteries annually, addressing the growing need for efficient recycling solutions in the automotive sector.
• Lithion Recycling Inc. introduced a new hydrometallurgical process in 2024, capable of recovering over 95% of lithium from used batteries. This innovative technology not only enhances the efficiency of recycling but also reduces the environmental impact by minimizing waste and emissions. This development positions Lithion Recycling as a leader in sustainable battery recycling technologies.

India Lithium-Ion Battery Recycling Market Analysis

India Lithium-Ion Battery Recycling Market Growth Drivers

• Increase in Electric Vehicle (EV) Adoption: The Indian electric vehicle market saw rapid growth in 2023, with over 1.5 million units sold. This surge in EV sales directly impacts the lithium-ion battery recycling market, as EVs are a major source of used batteries. The Ministry of Heavy Industries expects this trend to continue, projecting sales to reach over 5 million units by 2025, necessitating advanced recycling solutions for the influx of used batteries.
• Government Subsidies for Battery Recycling Plants: In 2023, the Indian government increased subsidies to USD 1.7 billion which is 8% of the 2022. These financial incentives aim to boost the establishment of state-of-the-art recycling facilities, driving the growth of the market.
• Expansion of Consumer Electronics Market: The consumer electronics market in India continues to expand, with smartphone sales alone reaching 150 million units in 2023. This expansion results in a higher volume of lithium-ion batteries requiring recycling. The Electronics and Information Technology Ministry predicts that by 2025, India will have around 250 million smartphones sold annually, creating a substantial demand for recycling services.

India Lithium-Ion Battery Recycling Market Challenges

• Lack of Standardized Recycling Processes: As of 2023, only 25% of collected batteries were processed using advanced methods. The Federation of Indian Chambers of Commerce & Industry (FICCI) reports that this inefficiency results in higher operational costs and lower recovery rates, impeding market growth.
• Environmental Concerns and Regulations: Recycling lithium-ion batteries involves handling hazardous materials, posing environmental and safety risks. In 2023, several incidents of improper disposal and processing led to environmental contamination, prompting stricter regulations. The National Green Tribunal reported an increase in regulatory scrutiny, which adds compliance costs and operational challenges for recycling companies.

India Lithium-Ion Battery Recycling Market Government Initiatives

• National Battery Recycling Policy 2023: The Indian government launched the National Battery Recycling Policy in 2023, mandating the recycling of at least 50% of lithium-ion batteries by 2025. The policy includes financial incentives, tax benefits, and penalties for non-compliance.
• Public-Private Partnership (PPP) Programs: The Ministry of Heavy Industries launched PPP programs in 2024 to enhance the lithium-ion battery recycling infrastructure. These programs involve collaborations between government agencies and private companies, providing funding and technical support. By 2025, the PPP programs are expected to facilitate the establishment of 30 new recycling facilities, improving the overall capacity and efficiency of the market.

India Lithium-Ion Battery Recycling Market Future Outlook

The India lithium-ion battery recycling market is growing over the next five years, driven by increasing electric vehicles sales and recycling technology.

India Lithium-Ion Battery Recycling Future Market Trends

• Growth in Electric Vehicle Sales: The Indian electric vehicle market is projected to continue its robust growth, with sales expected to reach 10 million units annually by 2028. This increase in EV adoption will significantly drive the demand for lithium-ion battery recycling, as more batteries reach the end of their lifecycle. The Ministry of Heavy Industries forecasts that this trend will create new opportunities for recycling companies and attract substantial investments.
• Advancements in Recycling Technologies: By 2028, advancements in recycling technologies are expected to improve the efficiency and profitability of battery recycling. Innovations such as hydrometallurgical and pyrometallurgical processes will enable higher recovery rates and reduce environmental impact. The Bureau of Indian Standards anticipates that these technologies will be widely adopted, leading to a 50% reduction in recycling costs and a 30% increase in recovery rates.