Can Recycled Materials Be India’s Next Big Battery Source?

Can India’s batteries be made from recycled materials? In theory yes, but it is overly simplistic to state this outright. India is the third largest consumer of energy globally due to its huge demography; with a projected demand of 600 GWh of energy storage by 2030. Pair with that, we do not yet have commercially operating battery manufacturers, domestically available critical minerals and nearly 100 per cent dependent on imports of battery materials, we have a resource security challenge. Battery waste is stated to reach over a million tonnes annually by 2030 which is a substantial store of valuable materials. Could recycled battery materials be a solution?

Recycling Readiness

India’s li-ion battery recycling landscape is young but rapidly evolving with 10-15 companies stepping up, investing in infrastructure and technology and are at various stages of technology deployment. Advanced materials science is ushering in a new era of battery recycling, moving beyond traditional hydrometallurgical and pyrometallurgical processes. Innovations such as integrated carbothermal reduction (promising no waste and high energy efficiency), magnetic separation for enhanced purity, and significantly improved hydrometallurgical techniques are demonstrating that recycled materials can meet, and even exceed, the stringent purity (often above 99.5 per cent) and performance standards required for new battery production. For example, Tesla's 2023 Impact Report notes declares that their recycled lithium performs identically to mined lithium, a sentiment echoed by industry players like Redwood Materials and Umicore. By scaling recycling, Indian firms can replicate this.

The Indian government has recognised that critical minerals are essential for a secure energy future and hence has made moves to secure the supply of battery materials via the Critical Minerals Mission as well as incentivise development of domestic battery manufacturing through the The PLI (Production Linked Incentive) scheme for Advanced Chemistry Cell (ACC) Battery Storage. The Battery Waste Management Rules, 2022 introduced the concept of EPR, making producers responsible for the recycling of used batteries. The rules set targets for recycling so that batteries do not end up disposed of incorrectly in ways that are harmful to the environment and foster a more organised ecosystem.

Challenges

Recycling in India does have significant hurdles. We lack efficient, organised collection and reverse logistics networks for end-of-life batteries. This leads to material loss and pollution due to using rudimentary methods of dismantling. More importantly, the lack of standardised battery designs and chemistries requires adaptable recycling technologies. The cathode composition will influence the recovered yield of the recycled metals, which can range from 70 per cent to 95 per cent for battery materials depending on the feedstock and the technology used. Economic viability can be ensured only with high recovery rates. Recycled materials have to be cheaper to produce, only then one can ensure that they are cost-competitive with mined resources. Last but not the least, refining critical metals into battery grade metals takes technical expertise and infrastructure which most recyclers currently do not possess. Most recyclers produce an intermediate material which is called black mass, which is exported, causing the nation to lose critical resources.

Why Recycling Still Wins

Recycled feedstock contains high-value resources. If we consider high-value metals like cobalt and nickel, which have concentrated global supply chains, domestic recovery would directly rescue geopolitical dependencies and import expenses. In 2023 india imported lithium and cobalt worth over $100 million. If India can successfully process the projected volumes of end-of-life batteries, reports by CEEW state that recycled materials could meet a substantial portion of India’s cobalt and nickel demand for new batteries if recycling systems are robust and established.

Recycling prevents environmental pitfalls from incorrect disposal such as soil pollution. It reduces the need for mining, which lessens the carbon footprint of battery manufacturing. The economics of battery recycling is dependent on the prices of the recovered materials, the technical efficiency of the recycling processes and the scale of operations. As waste battery availability increases, economies of scale will come into play, and this can lead to decreased recycling costs.

Conclusion

So, can recycled materials be India’s next big battery source? The answer is nuanced. While recycled materials are unlikely to entirely supplant the need for virgin raw materials in the near to medium term, especially given the projected explosive growth in battery demand. However, they are poised to become a critically important and substantial secondary source of battery raw materials for India. Investment in R&D and technology of both manufacturing and recycling and refining infrastructure along with battery standardisation will definitely make it possible for recycled materials to be India’s battery source.  If India can successfully navigate the challenges of recycling, end of life lithium batteries represents a strategic national asset, crucial for building a resilient, self-reliant, and circular battery economy.

The above article has been written by Manikumar Uppala, Co-Founder and Chief of Industrial Engineering at Metastable Materials.