2 Jan 2026
India’s electric mobility journey has reached a decisive moment. What began as a policy-driven effort to curb oil imports and urban air pollution has rapidly evolved into a large-scale industrial transformation. Electric vehicle adoption has surged over the last few years, supported by government incentives, localisation mandates, and growing consumer acceptance.
India’s EV Boom Meets a Defining Test in 2026: Fixing the Battery Recycling Gap
India’s electric mobility journey has reached a decisive moment. What began as a policy-driven effort to curb oil imports and urban air pollution has rapidly evolved into a large-scale industrial transformation. Electric vehicle adoption has surged over the last few years, supported by government incentives, localisation mandates, and growing consumer acceptance.
By the end of this decade, India aims to achieve nearly 30% penetration of electric passenger cars, 70% adoption in commercial vehicles, and near-total electrification of two- and three-wheelers. This momentum is accelerating the growth of the battery ecosystem at an unprecedented rate. Yet, beneath this progress lies a critical vulnerability expected to surface around 2026: the lithium-ion battery value chain, particularly at the end-of-life stage, remains fragmented. If left unaddressed, this weakness could undermine India’s clean mobility ambitions.
Policy Direction Is Strong, but Execution Must Catch Up
The government has clearly acknowledged this challenge. Battery Waste Management Rules and the strengthening of Extended Producer Responsibility (EPR) frameworks reflect a clear policy direction—batteries must move away from a linear “use-and-dispose” model. Instead, they must be tracked, collected, recycled, and reintegrated into the economy.
However, intent alone does not ensure impact. The coming years will bring tighter compliance norms, enhanced reporting, and stricter traceability requirements. Rather than viewing this as a regulatory burden, the industry should see it as an opportunity to professionalise battery value chains and build long-term resilience.
Rising Battery Waste Will Reshape the Industry
This challenge is imminent, not hypothetical. Projections suggest that lithium-ion battery waste in India could increase nearly sixfold by 2030 as EVs, consumer electronics, and energy storage systems reach end-of-life. The growth will accelerate further in the mid-2030s as today’s EV fleet begins to retire.
Every spent battery represents a valuable resource pool—containing lithium, cobalt, nickel, manganese, aluminium, and copper—materials India currently relies on imports for. In an era of geopolitical uncertainty and supply chain volatility, recovering these materials domestically is no longer optional; it is a strategic necessity.
Fragmented Recycling Creates Economic and Environmental Risks
Today, a significant share of used batteries flows through informal and unregulated recycling channels. These systems lack traceability, safety standards, and environmental controls. For producers, this leads to silent value erosion: recoverable materials are lost, compliance becomes difficult to demonstrate, and reputational risks increase as sustainability claims face closer scrutiny from regulators, investors, and consumers.
Fragmentation also introduces operational hazards, including fire risks, unsafe logistics, and higher insurance exposure—all of which ultimately affect costs and margins across the ecosystem.
Strategic EPR Partnerships Can Unlock Long-Term Value
Extended Producer Responsibility should be treated as a strategic lever, not merely a compliance checkbox. Well-structured EPR partnerships that connect OEMs, battery manufacturers, recyclers, and refurbishers can significantly strengthen supply security.
Such collaboration enables predictable collection volumes, assured recycling outcomes, and measurable recovery rates. It also opens pathways for battery refurbishment and second-life applications, allowing mobility batteries to be repurposed for stationary storage, telecom backup systems, or renewable energy integration.
Government Support Is in Place—Industry Leadership Is Essential
Government enablement has been largely effective. Digital EPR platforms, clearer accountability frameworks, and defined compliance metrics have reduced ambiguity. The next step must come from industry.
Producers need to invest in nationwide collection infrastructure, support the transition of informal operators into the formal economy, and move away from short-term transactional recycling arrangements. Long-term partnerships are essential to achieve scale, economic viability, and environmental sustainability.
Regional Infrastructure Will Shape Circular Economy Outcomes
Battery waste generation will not be confined to major metros. Tier 2 and Tier 3 cities, logistics corridors, and emerging EV manufacturing hubs—particularly in eastern and central India—will contribute significantly. Establishing regional recycling and refurbishment facilities, backed by OEM agreements, can reduce transportation risks, improve safety, shorten processing cycles, and create green employment opportunities.
Circular Supply Chains Are Becoming a Global Imperative
Beyond domestic compliance, global market expectations are evolving rapidly. OEMs are increasingly evaluated on ESG performance, supply chain transparency, and circularity. International customers are demanding proof of recycled content and responsible sourcing.
For Indian manufacturers, structured EPR implementation and circular supply chain development will soon become a competitive differentiator. Early collaboration between OEMs, recyclers, and policymakers will allow systems, safety standards, and unit economics to mature. Fragmentation, by contrast, increases delays, risks, and costs across the value chain.
2026: A Turning Point for Institutionalising Circularity
India’s battery ecosystem stands at a pivotal crossroads. The policy foundation is in place, EV demand growth is strong and irreversible, and the missing link is a systematic approach to end-of-life management.
Addressing fragmentation is not simply a waste management challenge—it is a strategic move to strengthen industrial resilience. By acting now, India can move beyond electrification and position itself as a global leader in clean, circular, and responsible battery value chains.
The detailed article is published by https://www.autocarpro.in/ can be accessed from https://www.autocarpro.in/opinion-blogs/why-india-must-build-stronger-epr-partnerships-to-recycle-batteries-in-2026-130317
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