Battery Recyclers Profitability Boosted by Penalties: Official

New Delhi, Jan 18 (PTI) Financial penalties for failing to meet extended producers' responsibility obligations encourage battery recyclers and increase their profitability, said an official on Saturday.

Addressing India Battery Recycling and Reuse Summit 2025, in the run-up to Bharat Battery Show, Central Pollution Control Board Director V P Yadav said,"Considering all the challenges faced by recyclers, we have designed a system in which producers who fail to meet their obligations will face financial penalties."

These penalties will ultimately benefit the recyclers, as they generate credits that are then transferred to producers in exchange for compensation, he explained.

"We are also encouraging recyclers because we understand that without profitability, the recycling business will not thrive. Therefore, our efforts are driven by economic factors", Yadav said at the summit organised by industry body India Energy Storage Alliance (IESA).

Bharat Battery Show is a part of Bharat Mobility Global Expo 2025 being organised from January 17-22.

The Central Pollution Control Board (CPCB) has made a provision for the registration of recyclers and producers within the system, while also developing a central portal to centralize information.

This portal provides a single access point for all necessary data.

"Although the portal is still maturing—having been developed over the past year—we are now generating and transferring Extended Producer Responsibility (EPR) credits to producers," he said adding that the goal is to provide with a seamless process through this platform and its tools.

According to Ministry of Heavy Industries, the implementation of the ACC Production-Linked Incentive (PLI) scheme is set to spur the establishment of over 140 GWh of gigafactories across the nation by 2030.

As of August 2024, nearly 4 million electric vehicles (EVs) have been sold in India, with projections indicating continued growth driven by the government's renewed emphasis on EV adoption through the PM-e Drive initiative.

These changes mark a significant turning point in the battery industry, with an estimated 90-100 GWh of End-of-Life ACC batteries expected to enter the Indian market annually by 2030.

Presently, around 30,000 MT of discarded ACC batteries are circulating in the marketplace. This substantial waste stream highlights the urgent need for a thorough policy and regulatory framework to promote battery circularity.

Debi Prasad Dash, President, IESA said that IESA closely works with 20+ battery recycling and second life players out of its 200+ member organisations and also with government bodies like Ministry of Environment, Forest and Climate Change, Ministry of Mines and Ministry of Heavy Industries to create a robust circular economy framework for advanced batteries.

Additionally, he stated that IESA is collaborating with the Bureau of Indian Standards to create testing standards for second-life or repurposed batteries.

This summit was aimed at delving into battery recycling and reuse technologies, examine the global landscape, discuss safety standards, and identify key opportunities and challenges within the industry.

Highlighting the challenges faced by the recycling industry, Rajat Verma, Founder, Lohum and Chair India Recycling and ReUSe Council (IRRC) said that there are several issues that "we as an industry are grappling with, these include formalizing the informal sector, building traceability into the circular economy, establishing standards for recycling, and developing a skilled workforce to support the recycling industry."

To develop a robust battery recycling and sustainable second-life applications ecosystem in India, IESA launched the IRRC.