Lithium-ion battery recycling has potential to be a $3.5 billion circular battery economy in India

Published: Jul 28, 2025 14:45

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India holds significant untapped potential in lithium-ion battery (LiB) recycling, with a recent report projecting a $3.5 billion domestic circular economy by 2030 if recycling infrastructure and policies are prioritized. Despite soaring demand, it projected at 115 GWh by 2030 for EVs and energy storage with only 1% of LiBs are currently recycled, highlighting a critical gap. The report emphasizes that even baseline efforts could generate $500 million to $1 billion in revenue by 2030, but strategic interventions like policy reforms, hydrometallurgical capacity building, and reverse logistics upgrades are essential to unlock full economic and environmental benefits.
With the global standards of enforcing extended producer responsibility (EPR) and restricting black mass exports to boost domestic processing. Successful implementation could create 41,000 green jobs, reduce annual CO₂ emissions by 75,000 tones, and conserve 5.7 billion gallons of water. Stakeholders stress out the need for robust infrastructure, traceability systems, and industry collaboration to secure material self-reliance and meet India’s sustainability goals. Lastly, closing the loop between LiB adoption and recycling is vital to cut import dependence and build resilience in the clean energy transition.

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