IESA calls for streamlining regulation, incentives to boost battery recycling

New Delhi, Nov 18 (PTI) Industry body India Energy Storage Alliance (IESA) has urged the government to streamline regulations, incentivise innovation, and foster collaboration between industry and policymakers for building a circular battery economy.

India’s battery recycling industry has reached a pivotal moment, propelled by ambitious policy incentives, regulatory shifts, and rapid advances in technology, an IESA statement said.

According to the IMARC Group, the market was valued at USD 554.4 million in 2024 and is set to more than double to USD 1,304.1 million by 2033 (CAGR of 8.93 per cent for 2025-33), signalling the country’s strong commitment to a sustainable, circular battery ecosystem as part of its clean energy ambitions.

IESA President Debmalya Sen said, "India stands at a crucial juncture in building a circular battery economy. Our recommendations are designed to streamline regulations, incentivize innovation, and foster collaboration between industry and policymakers. This will not only address current feedstock and compliance challenges but also unlock new opportunities for sustainable growth in India’s battery recycling sector." IESA has submitted a comprehensive set of recommendations for policymakers and stakeholders, recommendations to govt to accelerate India's battery recycling ecosystem, it stated.

IESA recommends that the government should define clear roles and responsibilities under the Battery Waste Management Rules, including recognizing remanufacturers of second-life batteries as producers at the repurposed stage and establishing specific criteria for when a battery is considered 'second-life'.

There must also be clarity on who verifies recycler credentials and accountability in cases of fraudulent or non-compliant EPR transactions.

To incentivize eco-design for easier recycling, the introduction of an 'Eco-Mark' certification is suggested for batteries designed for recyclability and safe dismantling, alongside encouragement for the use of water-dispersible binders, recyclable fixtures, and non-thermoset adhesives.

Additionally, the adoption of sustainability certification for recyclers, adherence to benchmarks for energy, water, and emissions, and aligning collection, recovery, and recycled content usage targets with emerging battery chemistries and domestic manufacturing capabilities are also pivotal, IESA has said.

It suggested that exports should be limited to CPCB-registered recyclers to eliminate traders from the system.

The Ministry of Mines, under the NCMM, has launched a Rs 1,500 crore incentive scheme to support recyclers of e-waste, lithium-ion batteries (LiB), and end-of-life vehicles (ELVs), while the removal of customs duty on waste and scrap in 2024 aims to boost feedstock availability.

However, IESA stated that the market faces new complexities: the shift toward Lithium Iron Phosphate (LFP) batteries, stricter international waste regulations, and recent domestic policy changes have created feedstock shortages and operational challenges, particularly for smaller players.

Despite these headwinds, the industry’s long-term prospects remain strong, provided technological innovation and responsive policies keep pace with market needs, it has said. PTI KKS KKS ABI MR