Syllabus:
GS3: Conservation, environmental pollution and degradation, environmental impact assessment
Context: India’s push for decarbonisation has led to a swift rise in electrification, especially in EV adoption, raising the need for effective battery waste management.
More on the news
• India’s EV lithium-battery demand is projected to surge from just 4 GWh in 2023 to nearly 139 GWh by 2035. Simultaneously, the rapid expansion of the renewable energy sector is driving increased adoption of battery energy storage systems (BESS) to support India’s Net Zero by 2070 goals.
• Recognising the environmental risks of improper disposal such as hazardous material leakage into soil and water, the government enacted the Battery Waste Management Rules of 2022 to mandate sustainable recycling and management practices.
Battery Waste Management Rule 2022 (BWMR)
• Ministry of Environment, Forest and Climate Change, published the Battery Waste Management Rules to ensure environmentally sound management of waste batteries and promote circular economy.
• It covers all types of batteries, including Electric Vehicle batteries, portable batteries, automotive batteries and industrial batteries.
• The rule functions on the concept of Extended Producer Responsibility (EPR) where the producers (including importers) of batteries are responsible for collection and recycling/refurbishment of waste batteries and using of recovered materials in new batteries.
• EPR mandates producers to ensure all waste batteries are collected and sent for recycling or refurbishment, landfilling and incineration are strictly prohibited. Producers may manage this themselves or authorise others to handle collection, recycling, or refurbishment to fulfill their EPR obligations.
• The rule was amended in 2023 and much recently in 2024.
Challenges
• Undervalued EPR Floor Pricing: The centrally set EPR floor price is far too low to cover the actual cost of environmentally sound recycling, demotivating formal recyclers and incentivising informal or fraudulent actors.
• Inefficient Recovery and Resource Loss:
- Domestic recycling capacity is limited; only a few firms can process black mass to recover lithium, cobalt, nickel and graphite.
- As a result, up to 95% of battery waste is diverted to informal channels, causing nearly $1 billion in foreign exchange loss by 2030.
• Weak Compliance and Monitoring: Audit mechanisms for EPR certificates are inadequate. Informal recyclers issue fake certificates, and major producers often outsource non compliant waste.
• Informal Sector Exclusion: Over 90% of battery waste is collected by unregulated informal recyclers. They lack training, protective gear, and formal integration, leading to environmental and health risks like soil and water contamination.
Way Forward
• Recalibrate EPR Floor Pricing: Align EPR credits with real recycling costs, including collection, technology, logistics, and skilled labour, benchmark globally and adjust for local conditions.
• Strengthen Enforcement and Transparency: Deploy digital tracking systems, mandatory audits, and stiffer penalties for fraud and non-compliance.
• Formalise & Integrate the Informal Sector: Upskill and certify informal recyclers under structured programmes and enable partnerships with formal producers and recyclers to scale collection and improve safety practices.
• Invest in Advanced Recycling Technologies: Support hydrometallurgical and AI-driven sorting for high recovery of battery minerals.
- For instance, CSMCRI’s method extracts lithium with 97% purity in just over an hour, compared to conventional 2–3 days.
• Multi-stakeholder Collaboration: Foster dialogue among government, producers, recyclers, and associations. Encourage original equipment manufacturer to internalise recycling costs and oversee EPR compliance directly.