India And EU Launch ₹169 Crore Initiative To Boost EV Battery Recycling Capacity

India and the European Union have officially launched a joint initiative valued at ₹169 crore to strengthen Electric Vehicle battery recycling capacity. Operating under the India-EU Trade and Technology Council, the program aims to secure critical raw materials and accelerate the transition to a circular economy. Principal Scientific Adviser Professor Ajay Kumar Sood highlighted that building a robust domestic recycling ecosystem is essential for India's environmental commitments and resource security as EV adoption surges.

The initiative will prioritize the development of advanced recycling technologies, including high-efficiency material recovery and digitized, safe collection systems. A key component of the project is the establishment of a joint India-EU pilot line in India, which will serve as a platform for real-world validation and industrial deployment of these innovative processes. This effort is designed to bridge the gap between laboratory research and large-scale industrial application in the battery recycling sector.

The domestic battery recycling market is projected to reach approximately ₹31,150 crore by 2030, driven by stricter regulatory enforcement under the Battery Waste Management Rules. With NITI Aayog projecting that India will generate 128 GWh of recyclable lithium-ion batteries by 2030, the current recycling rate of less than 3% presents a significant opportunity for growth. The government is also preparing a new policy to develop a domestic processing value chain for battery minerals, further supporting the industry's expansion.