Financial Penalties For Producers Failing EPR Obligations

The India Battery Recycling and Reuse Summit 2025, hosted by the India Energy Storage Alliance (IESA), has gathered policymakers, industry leaders, and stakeholders to discuss critical challenges and opportunities in India's battery recycling and reuse ecosystem. Organized at the NDMC Convention Center in New Delhi, the summit will aim to provide a platform for dialogue on how to strengthen battery circularity, shape regulatory frameworks, and ensure sustainability for advanced battery technologies.

With rapid advancements in electric mobility in India, the Ministry of Heavy Industries expects that the ACC Production-Linked Incentive (PLI) scheme will spur the creation of more than 140 GWh of gigafactories by 2030. By August 2024, the country had sold nearly four million electric vehicles, and the growth is expected to continue under the PM-e Drive initiative. This will lead to 90-100 GWh of End-of-Life (EOL) batteries annually by the end of the decade, emphasizing the need for developing robust recycling and reuse solutions.

Speaking at the summit, Shri V.P. Yadav, Director of the Central Pollution Control Board (CPCB), stated that the government was committed to the implementation of Extended Producer Responsibility (EPR) under the Battery Waste Management Rules 2022. "We have put in place financial penalties for defaulting producers so that they don't shy away from their responsibility.". These penalties will not only enforce accountability but also provide recyclers with credits that can be transferred to producers for compensation,” said Mr. Yadav. He emphasized the development of a central portal for registration and data management, streamlining the process for both producers and recyclers. Although still evolving, this platform aims to facilitate seamless EPR credit generation and transfer.

Mr. Yadav said that profitability is a must and the biggest challenge for recyclers. He concluded by saying, "We will implement a conducive framework that encourages recyclers to continue the business and sustains the industry."

Industry leaders also used the summit as an avenue to share their insights and recommendations. Mr. Debi Prasad Dash, President of IESA, said that the alliance is working to develop a circular economy framework for advanced batteries. "IESA works closely with over 20 battery recycling and second-life application players among its 200+ member organizations. We are collaborating with the Ministry of Environment, Forest and Climate Change (MoEFCC), the Ministry of Mines, and the Ministry of Heavy Industries (MHI) to promote sustainable practices.". It's working on testing standards with the Bureau of Indian Standards for repurposed batteries, as well. Reuse and recycling are also very important to the ecosystem: holding onto the lithium and other materials is important in this regard, says Mr. Dash.

The conference looked at the global best practices in safety standards and cutting-edge technologies for the reuse and recycling of batteries. The industry must formalize the informal sector, build traceability into the circular economy, have standards for recycling, and skill building. It has to take away old technology and introduce new one which will suit future needs." That was the summation of what needed to be done by Rajat Verma, founder Lohum, chair India Recycling and Reuse Council (IRRC). Mr. Verma said fair incentives and proper funding were important for growth to be fostered. He suggested that greater coordination among stakeholders should be made so that the policies are made finer to reflect ground realities.

To further strengthen the ecosystem, IESA launched the India Reuse and Recycling Council (IRRC). The council aims to identify opportunities and challenges in the sector and develop a comprehensive roadmap for sustainable second-life applications and battery recycling. Collaborating with global organizations, the IRRC seeks to share best practices, enhance recycling standards, and contribute to India’s goal of becoming a leader in battery sustainability.

Currently, India has more than 20 emerging battery recyclers. Looking ahead, Mr. Verma was optimistic about the sector's potential and could see billion-dollar Indian companies emerging in the next five years.

The summit ended with a collective call to action, by demanding the collaboration of stakeholders in shaping up a resilient, efficient, and environmentally sustainable battery recycling and reuse ecosystem. As India sets sail in its journey of transitioning to EVs, such initiatives will play a pivotal role in securing the country's energy future while ensuring the protection of the environment.