Abstract

The rapid uptake of electric vehicles (EVs) worldwide is creating a new challenge of end-of-life (EoL) lithium-ion batteries (LIBs). As EV penetration accelerates under national initiatives such as the National Electric Mobility Mission Plan and Faster Adoption and Manufacturing of Electric Vehicles (FAME), the country faces an emerging challenge of managing end-of-life batteries. This paper examines technical pathways for second-life reuse of EV batteries (e.g. stationary energy storage, grid support, charging backup) and recycling processes (mechanical, pyrometallurgical, hydrometallurgical) within India’s context. Second-life utilization of EV batteries, typically retired at 70–80% of their original capacity, presents significant opportunities for stationary energy storage, grid balancing, renewable energy integration, and backup power systems. Applications such as battery energy storage systems (BESS) for telecom towers, microgrids, and commercial buildings can extend battery life by 5–10 years while reducing lifecycle costs and carbon emissions. However, technical barriers including performance degradation, safety concerns, state-of-health estimation, and lack of standardization remain major challenges. We analyze environmental and circular-economy impacts, including life-cycle emissions and critical mineral recovery, and review India’s recent regulatory framework (Battery Waste Management Rules 2022, Extended Producer Responsibility, etc.). A case-study survey highlights Indian initiatives – such as Tata Power’s battery energy storage, Ola Electric’s grid/home storage products, JSW MG’s second-life BESS pilots, and recycling companies like Attero and Lohum. For comparison, we contrast India’s efforts with policies in the EU (ambitious recycled-content targets and efficiency rules), the US (incentives under the Inflation Reduction Act and state deposit/EPR programs), and China (stringent cascade-use mandates and high material-recovery rates). We find that India is rapidly building a circular battery ecosystem but faces challenges in formalizing collection, labeling, and large-scale processing. Through strategic policies and innovative business models, India can enhance material security – e.g. domestic recycling could supply ~40% of its Li, Ni, Co needs by 2050– while reducing lifecycle emissions (by up to 2.9 million tons CO₂-equivalent by 2050).

Keywords: Lithium-ion battery recycling; Battery energy storage systems (BESS); Circular economy; Extended Producer Responsibility (EPR); Battery Waste Management Rules (India); Hydrometallurgical recycling; Pyrometallurgical recycling; Critical minerals recovery; Sustainability assessment; Life cycle analysis (LCA); Grid-scale energy storage.

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1. European Commission. Circular economy: New rules to boost recycling efficiency from waste batteries. EU Commission; 2025.
2. Tang L. China unveils new used EV power battery rules; recycling market remains gloomy. S&P Global News. Aug 2024.

3. Rocky Mountain Institute India. Charting a circular battery future in India. RMI India; 2025.
4. Kumar P, Mulukutla P, Pai M. Enabling EV battery reuse and recycling in India. New Delhi: WRI India; 2023 Feb.
5. International Energy Agency. The role of critical minerals in clean energy transitions. Paris: IEA; 2021.
6. Roychowdhury A, Mohanty M, et al. Recycling EV battery material: Towards material security and sustainability. Centre for Science and Environment; 2023.
7. Kumar P, Meshram A, et al. Second charge: Unlocking second-life potential of EV batteries. WRI India Perspectives. 2025 Jul 30.
8. Abhiraman VJ, et al. Comparative life cycle assessment of lithium iron phosphate and nickel manganese cobalt batteries for electric vehicles: An Indian perspective. Energy Sustain Dev. 2025;101837. doi: 10.1016/j.esd.2025.101837.
9. Ministry of Environment, Forest and Climate Change. Detailed report on battery demand and recycling in India. Press Information Bureau; 2025 Dec.
10. Maheshwari K. EV-ready India: Giving EV batteries a second life. Ola Mobility Institute; 2021.
11. Economic Times. Ola Electric enters residential energy storage with Shakti rollout. ET Tech. 2026 Jan.
12. PV Magazine India. JSW MG Motor India unveils its fourth pilot project under “Project Revive”. PV Magazine India. 2025 Jan.
13. EVreporter. “We are the only facility in India capable of handling all kinds of end-of-life Li-ion batteries”: Nitin Gupta (Attero). EVreporter. 2024 Dec.
14. Michelini E, et al. Potential and most promising second-life applications for automotive lithium-ion batteries considering technical, economic and legal aspects. Energies. 2023;16(6):2830. doi:10.3390/en16062830.

Abstract

The rapid uptake of electric vehicles (EVs) worldwide is creating a new challenge of end-of-life (EoL) lithium-ion batteries (LIBs). As EV penetration accelerates under national initiatives such as the National Electric Mobility Mission Plan and Faster Adoption and Manufacturing of Electric Vehicles (FAME), the country faces an emerging challenge of managing end-of-life batteries. This paper examines technical pathways for second-life reuse of EV batteries (e.g. stationary energy storage, grid support, charging backup) and recycling processes (mechanical, pyrometallurgical, hydrometallurgical) within India’s context. Second-life utilization of EV batteries, typically retired at 70–80% of their original capacity, presents significant opportunities for stationary energy storage, grid balancing, renewable energy integration, and backup power systems. Applications such as battery energy storage systems (BESS) for telecom towers, microgrids, and commercial buildings can extend battery life by 5–10 years while reducing lifecycle costs and carbon emissions. However, technical barriers including performance degradation, safety concerns, state-of-health estimation, and lack of standardization remain major challenges. We analyze environmental and circular-economy impacts, including life-cycle emissions and critical mineral recovery, and review India’s recent regulatory framework (Battery Waste Management Rules 2022, Extended Producer Responsibility, etc.). A case-study survey highlights Indian initiatives – such as Tata Power’s battery energy storage, Ola Electric’s grid/home storage products, JSW MG’s second-life BESS pilots, and recycling companies like Attero and Lohum. For comparison, we contrast India’s efforts with policies in the EU (ambitious recycled-content targets and efficiency rules), the US (incentives under the Inflation Reduction Act and state deposit/EPR programs), and China (stringent cascade-use mandates and high material-recovery rates). We find that India is rapidly building a circular battery ecosystem but faces challenges in formalizing collection, labeling, and large-scale processing. Through strategic policies and innovative business models, India can enhance material security – e.g. domestic recycling could supply ~40% of its Li, Ni, Co needs by 2050– while reducing lifecycle emissions (by up to 2.9 million tons CO₂-equivalent by 2050).

Keywords: Lithium-ion battery recycling; Battery energy storage systems (BESS); Circular economy; Extended Producer Responsibility (EPR); Battery Waste Management Rules (India); Hydrometallurgical recycling; Pyrometallurgical recycling; Critical minerals recovery; Sustainability assessment; Life cycle analysis (LCA); Grid-scale energy storage.

🔒 This is a subscription article

Full text is available to subscribers and institutional members. Please choose an option below to access it.

1. European Commission. Circular economy: New rules to boost recycling efficiency from waste batteries. EU Commission; 2025.
2. Tang L. China unveils new used EV power battery rules; recycling market remains gloomy. S&P Global News. Aug 2024.

3. Rocky Mountain Institute India. Charting a circular battery future in India. RMI India; 2025.
4. Kumar P, Mulukutla P, Pai M. Enabling EV battery reuse and recycling in India. New Delhi: WRI India; 2023 Feb.
5. International Energy Agency. The role of critical minerals in clean energy transitions. Paris: IEA; 2021.
6. Roychowdhury A, Mohanty M, et al. Recycling EV battery material: Towards material security and sustainability. Centre for Science and Environment; 2023.
7. Kumar P, Meshram A, et al. Second charge: Unlocking second-life potential of EV batteries. WRI India Perspectives. 2025 Jul 30.
8. Abhiraman VJ, et al. Comparative life cycle assessment of lithium iron phosphate and nickel manganese cobalt batteries for electric vehicles: An Indian perspective. Energy Sustain Dev. 2025;101837. doi: 10.1016/j.esd.2025.101837.
9. Ministry of Environment, Forest and Climate Change. Detailed report on battery demand and recycling in India. Press Information Bureau; 2025 Dec.
10. Maheshwari K. EV-ready India: Giving EV batteries a second life. Ola Mobility Institute; 2021.
11. Economic Times. Ola Electric enters residential energy storage with Shakti rollout. ET Tech. 2026 Jan.
12. PV Magazine India. JSW MG Motor India unveils its fourth pilot project under “Project Revive”. PV Magazine India. 2025 Jan.
13. EVreporter. “We are the only facility in India capable of handling all kinds of end-of-life Li-ion batteries”: Nitin Gupta (Attero). EVreporter. 2024 Dec.
14. Michelini E, et al. Potential and most promising second-life applications for automotive lithium-ion batteries considering technical, economic and legal aspects. Energies. 2023;16(6):2830. doi:10.3390/en16062830.