E-Waste Start-ups Capitalizing On EV Battery Recycling Lohum Cleantech's over 50% revenues are already derived from the EV battery recycling vertical spanning both domestic and international markets.
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Electric Vehicles were there in India since 2017 but in the last few years, the sector has gained spotlight and emerged as a new revenue generative field for many start-ups. Few years ago, EVs were considered as an option or maybe as an alternative to ICE vehicles. Hence, there was not much focus on the batteries which are one of the main components of the product. EV batteries alone contribute to 40 per cent value of the vehicle.
However, things have changed now and many EV start-ups are working on bringing down the cost of EV with the help of new technologies that are coming up every now and then. They are now more focused on EV batteries to make then sustainable and recyclable.
Amid this, domestic e-waste recycling start-ups have geared up to capitalise on the lucrative new revenue stream – recycling lithium-ion batteries which contribute to high level of carbon footprints.
Recyclers are looking to extract value from these spent EV batteries, which typically have a lifespan of 5-8 years.
Nitin Gupta, CEO & Co-founder, Attero said that these batteries present significant challenges as the hazardous nature of Li-ion batteries necessitates responsible recycling to mitigate environmental pollution.
"In such a scenario, recycling emerges as a solution to meet these needs sustainably that not only alleviates the pressure on limited global resources but also offers substantial environmental benefits by reducing the need to extract new raw materials, thereby curbing mining-related environmental degradation," he added.
Echoing the same, Dr. Rahul Walawalkar-Founder & President of IESA said, "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."
He said that India Energy Storage Alliance is working over 10 key players in the recycling ecosystem and more than 100 member companies through India Reuse and Recycling Council to ensure India becomes a global leader in recycling and 2nd life applications.
Speaking to Entrepreneur, Rajesh Gupta, Founder & Director, Recyclekaro attributed the surge in the industry to initiatives like FAME and PLI and said, "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."
The global energy transition indicates exponential demand for sustainable low-carbon raw materials for clean technologies and advanced manufacturing. The world thus demands material circularity, and meeting that demand through recycling will continue to be astoundingly lucrative.
Another opportunity delivered to the EV battery recycling ecosystem is a fertile regulatory environment in India and worldwide. India's BWMR 2022 lay out clear guidelines for stakeholders and mandate 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.
The EV battery recycling, refurbishment, and repurposing sector, or battery asset management ecosystem, is slated to unlock significant opportunities for employment, sustainability, and innovation.
Meanwhile, Lohum Cleantech highlights the opportunities in this space for the startup and said that opportunity delivered to the EV battery recycling ecosystem is a fertile regulatory environment in India and worldwide.
"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.
According to TheKredible, Lohum Cleantech's over 50% revenues are already derived from the EV battery recycling vertical spanning both domestic and international markets.
Meanwhile, end-of-life batteries from EVs currently contribute 10 per cent to Attero's recycling volumes, a figure expected to triple by FY24-end as more batteries reach the end of their life cycle.
Despite offering opportunities, the EV space comes with its own share of challenges, Anupam Kumar, Co-founder & CEO, MiniMines said, "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."
Agreeing with Kumar, Shubham Vishvakarma, Founder and Chief of Process Engineering, Metastable Materials said that squeezing every drop of value out of these batteries before they die is of utmost importance. Reusing materials, not just throwing them away, is key.
"Letting these minerals end up in landfills or exported as scrap is like giving away free gold. There have been steps in the right direction with Battery Waste Management Rules and targets like the National Electric Mobility Mission Plan 2020. There are also challenges in developing the tech fast enough since battery chemistries are very different and there is no standardisation," he added.
A 2022 Niti Aayog report estimated that India's cumulative potential for Li-ion batteries across sectors will be around 600 GWh between 2022 and 2030. Of this, an estimated 128 GWh will be available for recycling by 2030, with 46 per cent expected to come from the EV segment alone.
