Context & Background

• India is rapidly moving towards electric vehicle (EV) adoption and decarbonisation.
  
  
• Demand for lithium-ion batteries is expected to reach 139 GWh by 2035 (from 4 GWh in 2023).
  
  
• Growth in battery energy storage systems (BESS) is driven by renewable energy expansion and Net Zero goals by 2070.
  
  

Key Issues Highlighted

1. Environmental Concerns

• Improper disposal of lithium batteries leads to:
  
  
  • Soil and water contamination.
    
    
  • Leakage of hazardous materials.
    
    
• Lithium batteries are a major source of e-waste (~7 lakh tonnes out of 1.6 million tonnes in 2022).
  
  

2. Lack of Robust Recycling Framework

• India lacks a strong regulatory and pricing mechanism to manage battery waste effectively.

Policy Response

• Battery Waste Management Rules (BWMR), 2022 were introduced to enforce sustainable battery recycling.

Primary Challenge: Absence of a Floor Price

• Extended Producer Responsibility (EPR) is a key mechanism.
  
  
• Problem: No floor price exists for EPR certificates.
  
  
• Consequences:
  
  
  • Recycling becomes economically unviable.
    
    
  • Market distortions and fraudulent recycling.
    
    
  • Producers may prefer to pay fines or buy fake certificates.

Suggested Solution: Establish a Fair EPR Floor Price

• Should reflect:
  
  
  • Full recycling cost (collection to processing).
    
    
  • Industry standards.
    
    
  • Market maturity.
    
    
• Learn from the UK model: EPR recycling cost for EV batteries is ₹600/kg vs. much lower in India.
  
  
• A fair price deters shortcuts and ensures transparency.

Second Major Gap: Integration of Informal Recyclers

• Informal sector lacks:
  
  
  • Tech and logistics.
    
    
  • Regulatory accountability.
    
    
• Integration with formal sector can:
  
  
  • Boost capacity.
    
    
  • Improve monitoring.
    
    
  • Reduce fraud and environmental risks.

Recommendations

1. Set a Global-Comparable EPR Floor Price:
   
   

• Avoid price manipulation.
  
  
• Create stable recycling markets.
  
  

1. Strengthen EPR Mechanisms:
   
   

• Use tech for certificate tracking.
  
  
• Ensure audits and fraud detection.
  
  

1. Incorporate Informal Sector into Formal Economy:
   
   

• Provide financial and regulatory support.
  
  
• Enhance India’s recycling infrastructure.

Conclusion

• Battery recycling is not only an environmental need but also a strategic and economic imperative.
  
  
• A robust EPR system and integration of recyclers are essential to close the loop in India’s battery value chain and transition to a circular economy.
  
  

10-Marker Questions (150 words)

1.    Discuss the environmental challenges posed by improper disposal of lithium-ion batteries in India. Suggest sustainable waste management strategies.