E-Waste Start-ups Capitalizing On EV Battery Recycling
In India, electric vehicles have been available since 2017, but in the past few years, the industry has garnered attention and developed into a new source of income for numerous startups. An alternative or an option to internal combustion engine vehicles (ICE) was the thinking a few years ago. The batteries, one of the product’s primary components, received little attention as a result. The value of the vehicle is increased by 40% just from EV batteries.
Today, the landscape has shifted. EV startups are now harnessing emerging technologies to reduce costs and enhance the sustainability and recyclability of EV batteries. Concurrently, domestic e-waste recycling startups are seizing the opportunity to enter the profitable niche of recycling lithium-ion batteries, known for their substantial carbon footprint.
These recyclers aim to salvage value from used EV batteries, which have an average lifespan of 5-8 years. Nitin Gupta, CEO & Co-founder of Attero, highlights the challenges posed by the hazardous nature of Li-ion batteries, underscoring the need for responsible recycling to prevent environmental harm.
Recycling is seen as a sustainable solution that eases the strain on finite resources and offers environmental advantages by reducing the extraction of new raw materials, thus limiting mining-related environmental damage.
“Recycling of EV batteries is emerging as a perfect opportunity for start-ups in India. India’s Battery Waste Management Rules of 2022 by Ministry of Environment, Forest & Climate Change (MOEFCC) mandate that 90 per cent of discarded materials must be recycled and recovered by 2026, with 20 per cent of that going into new batteries by 2030. The rules apply to all types of batteries, including electric vehicle batteries, portable batteries, automotive batteries, and industrial batteries.”
Dr. Rahul Walawalkar-Founder & President of IESA said.
The India Energy Storage Alliance is collaborating with over 10 key players in the recycling ecosystem and more than 100 member companies through the India Reuse and Recycling Council to position India as a global leader in recycling and second-life applications.
Speaking to someone, “As the initial wave of EVs from 2017-2018 nears the end of their life cycle, there’s a noticeable surge in demand for new batteries and the recycling of old ones. However, at this crucial juncture, meeting the escalating demand for EV batteries sustainably is imperative to avoid resource scarcity and ethical dilemmas. India is actively forging a closed-loop battery ecosystem through measures like Extended Producer Responsibility (EPR), fostering both innovation and responsible recycling infrastructure.”
Rajesh Gupta, Founder & Director, Recyclekaro attributed the surge in the industry to initiatives like FAME and PLI and said.
The world’s energy shift points to an exponential need for low-carbon, sustainable raw materials for advanced manufacturing and clean technologies. Material circularity is therefore required by the globe, and recycling will continue to be an incredibly profitable way to achieve this demand.
An additional benefit to the ecosystem for recycling EV batteries is the favorable regulatory climate both globally and in India. India’s BWMR 2022 requires Extended Producer Responsibility and lays forth precise requirements for stakeholders. Manufacturers of electric vehicles, auto dealerships, and other underwriters are required to retrieve a substantial portion of batteries for recycling or alternative uses. Through a variety of creative economic models, battery asset stakeholders are partnering with battery logistics firms, recycling companies, and underwriters to fulfill this obligation.
The recycling, refurbishing, and repurposing of electric vehicle batteries, also known as the battery asset management ecosystem, is expected to create a large number of job opportunities and promote sustainability and creativity.
Lohum Cleantech, on the other hand, outlines the startup’s prospects in this field and claims that a favourable legislative framework in India and around the world is provided to the EV battery recycling ecosystem.
“India’s BWMR 2022 lays out clear guidelines for stakeholders and mandates Extended Producer Responsibility. EV battery manufacturers, dealerships, and other underwriters must recover a significant percentage of batteries for recycling or repurposing. To fulfill this responsibility, battery asset stakeholders are tying up with battery recycling companies, battery logistics companies, and underwriters through various innovative business models,”
said Pratyush Sinha, Vice President, Lohum Cleantech.
.TheKredible claims that Lohum Cleantech already receives more than 50% of its revenue from the domestic and worldwide EV battery recycling sector.
As more batteries approach the end of their life cycles, end-of-life batteries from EVs currently make up 10% of Attero’s recycling volumes; by the end of FY24, this percentage is predicted to triple.
Despite offering opportunities, the EV space comes with its share of challenges,
“Navigating the path to sustainable battery recycling is not without its challenges. One of the key hurdles that we are facing as an industry is scaling up our operations to meet the escalating volume of lithium-ion batteries. There is an ever-increasing need to a focus on the investments in research and development as the EV market continues to expand.”
Anupam Kumar, Co-founder & CEO, MiniMines said.
A Niti Aayog report from 2022 estimates that India’s cumulative potential for Li-ion batteries across various sectors could reach 600 GWh between 2022 and 2030. Approximately 128 GWh of this is expected to be available for recycling by 2030, with nearly half originating from the EV sector.
Content Credit: Entrepreneur India
