Well, recycling work starts at the moment only when the first material becomes waste. Similarly, the recycling business of lithium-ion batteries can also tap into the market just when we have enough waste material in hand to recycle the same.
Since India is still transitioning from motor vehicles to EVs, the recycling part is yet to come – As the battery usage in substantial amounts has lately started. But the waiting clock to start the recycling business of batteries has now come to end.
As there are numerous batteries used in devices and EVs that have reached and are soon to reach their end of life, starting the business to treat this e-waste will take off as soon as there is material available to recycle.
“The lithium-ion battery market in India is expected to increase from 2.9 GWh in 2018 to about 132 GWh by 2030 at a CAGR of 35.5%” – JMK Research
Now is the right time when the looming challenge of used batteries starts for India – which is a great business idea for the future.
Want to see how used batteries bring a great business option? In this post, you’ll see how battery usage rose, landfills are deluged with used batteries, and how the barrage of batteries will help you flourish your Lithium-ion Battery recycling business in India.
Additionally, in this post, you get to know how much it costs to set up a battery recycling plant in India, and about the companies who are already in it.
If you want to know more and all, keep reading…
The government of India advocates the shift towards EVs, claiming they would cause lower adverse environmental impact and help save INR 1 lakh crore annually in imports of crude oils.
But there are serious concerns that are to be taken care of with the increased shift towards EVs.
India is massively stirring toward EVs. But this shift seems to be without a potent plan in hand that integrates renewables. If the heavy shift towards EVs goes without a fitting reusable energy plan, the people living near power generation centers might face adverse effects.
So, since India is at the EV’s nascent stage, energy experts suggest, we need the interventions of policies and nudges on the behaviors of the industry to overcome any foreseen problems – The supply chain of the batteries to support the growth of EVs.
Where the supply chain of batteries seems to be a problem around the corner, batteries already in use and proceeding to the end-of-life is a well-posed threat too.
IHS Markit says – There have been more than 5,00,000 metric tons of Li-ion batteries in 2020. This figure of used batteries will reach 1.2 million tons in 2025, and piling in seven-folds, it is expected to reach 3.5 in the year 2030. (1)
Continuing the word, they say EV’s potential demands for new batteries have been 250 Gigawatt/hour in 2020 and will be 1700 gigawatt/hour in 2030 while reaching 2050 it seems to be 5000 gigawatts/hour per year.
So consequently, IHS market state, since the demand for batteries is and seems to be on an up-hook, the need of the same will rapidly expand the recycling lithium-ion industry by three times in 2030.
Additionally, IHS says, the recycled material at present might not be much in quantity. But, as the repositories are getting filled with enough material to be recycled, it will bring enough recycled material to create new batteries while approaching 2030.
For the world that is transitioning from fuel to renewable-fuel source, it needs to instrumentalize the problem to depend on renewables altogether. Thus, choosing to be a business that would make fuel (batteries) for vehicles, mobiles, and other appliances in the coming era is indeed meant to flourish.
All we have to do is create a self-perpetuated cycle, by recycling the batteries that have reached their end-of-life. Doing so will not only lead to meeting the demands of batteries soon sustainably, but it will save us from mining the battery material too. Which will thus protect the reserves of raw materials like cobalt, lithium, and nickel.
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Battery Recycling Business for Small Scale Industries (SSI) in India
The prices of the battery in the last year have been falling unlike fuels, which has raised the penetration of Electric Vehicles in the market.
To keep EV users’ batteries efficient, different agencies have come up with new schemes for swiping the old batteries with new ones. But this trend of swiping the batteries and creating a changing hub will not solve the entire problem.
Swiping old batteries with new ones demands more production of the batteries. When everyone is thinking of producing batteries, EVs, and creating charging stations, it is important, someone thinks of recycling the batteries in use at present as well.
Read More: Battery Swapping Stations Cost
The recycling idea is not only a process to reuse the battery and the material used in it but is an opportunity to create a market, which is still untapped and is worth exploring.
So, the recycling Business of lithium batteries has to be taken seriously, considering India will soon have the first batch of used batteries in hand. With the help of start-ups and battery manufacturers, a recycling solution must be found to fight and prevent the big gap in the market.
For SSIs who might think of taking up this battery recycling business, should know, you might struggle at the moment to set up a recycling plant, but this struggle will let you have an opportunity of 1000 million at your disposal, said JMK Research.
There are already a lot of companies that have stepped into the recycling business, and a few have a plan in hand. With the easiest way to recycle lithium-ion batteries, we have mentioned in our previous blog, having recycling plants can be your plan too.
George Hilton, energy storage senior analyst, IHS Markit says
“Battery recycling is a key enabling technology that will allow electric vehicles to maximize their sustainable credentials. In coming years recycled battery materials will enable EVs to be produced more sustainably, at lower cost and reduced reliance on complex, international raw material supply chains.”
Since the cost of the recycled materials is lower than the virgin material, with the small initiative of Lithium-ion Battery recycling, you can do social-environmental welfare both together.
A society where people look for sustainable cars to drive, and an environment that wants to stay aloof from battery landfills and be a womb to minerals, you can serve them both if you start a Li-ion Battery recycling Business in India.
Read Also- Business Opportunities in EV Sector For SSI
Besides, the Delhi government brought an EV policy in August 2020. According to the policy, the government wants 1000 Electric buses and more than 50% of public transport buses to be electric in the city.
So, if the buses are electric, there will be a separate landfill of batteries in the city by the end of the decade to be treated. This calls for a new opportunity for the SSIs. Because the more the used batteries are on the earth, the more it creates favorable circumstances for SSIs to grow and flourish.
To let the SSI know more about how this Lithium-ion Battery recycling business in India is a great option, know that the C-MET (Centre For Materials For Electronics Technology) has invited expressions of interest for the project they are rewarded with – management of E-waste Ministry of Electronics and Information Technology, (MeitY).
The project would include an “Establishment of Centre of Excellence on E-waste Management called CoE that would support the recycling of e-waste that would further support “Swachh Bharat” and “Make in India” GoI mission.
To register and to be a part of e-waste management with the government, you can register here.
We say – where there is a will, there is a way. Since the e-waste stands a major foreseen hurdle, the SSI taking up the recycling business of Li-ion to stand the fight can not only curb the ratio of growing heaps of used Li-Ion batteries but can become a well-established industry shortly too.
Lithium-ion Battery Recycling Companies in India
The frontline cause of why the production of the battery-powered car is expensive is the cost of the raw material that is used in the same. Raw material for lithium-ion batteries used includes lithium, cobalt, manganese, graphite, and nickel.
Since the EVs are now in the outpace and the consumers want to ramp up EVs, the demand for the above-mentioned raw materials and batteries will increase in the future. If the usage of the virgin material is not brought to a limit, it will lead to another problem while solving one cause.
So, to take hold of the plumped-up use of raw materials and mines of minerals safely, here are a few Lithium-ion Battery Recycling Companies in India that have taken a step forward to recycle the batteries that have reached their end-of-life. They recycle the batteries and bring out the material to be used in the production of new batteries. A few companies in India are:
Here is the List of Lithium-ion Battery Recycling Companies in India
EcoReco is an e-waste recycling company based in Mumbai that recycles waste with innovative end-to-end e-waste processing that saves the environment and recovers the reusables from the waste batteries.
The company is authorized by the Maharashtra Pollution Control Board and registered by the Central Pollution Control Board.
Umicore is a battery recycling company that believes your waste is their specialty. Since they believe batteries are the essentials to our modern lifestyle, they want to help India to overcome this environmental challenge that is caused due to our enhanced usage of devices and EVs.
They provide the Lithium-ion Battery recycling service with all possible applications across the globe.
Tata Chemicals Limited
Tata Chemicals Limited has always promised a commitment to sustainability – with their lithium-ion battery recycling business, has set up a circular economy.
In this, with a proven hydrometallurgical recycling method, they recycle the used batteries and further contribute to the value chain. The metal salts like lithium, cobalt, nickel, manganese extracted can be used in the manufacturing of lithium-ion batteries and the production of other energy systems.
So, with the commitment to sustainability, they recycle up to 120 tonnes of lithium batteries annually.
Overcoming a handful of companies that contribute to recycling the Li-Ion batteries, which you can be a valuable part of, too – Here is the cost of setting up a recycling plant. The cost might help you have a clear picture of whether you can dip your hands in the business or not.
In December 2020, it was announced by Rajeev Chaba, President and Managing Director, MG Motor India that “MG MOTOR INDIA TIES UP WITH TES-AMM INDIA FOR RESPONSIBLE RECYCLING OF EV BATTERIES”
TES-AMM in Asia is the only company that owns a Lithium-ion battery recycling plant that is counted in a few companies having been certified in multiple management systems including 18001:2007/R2 (Responsible Recycling).
Other players who are working on Recycling lithium-ion Batteries in India
|TES-AMM||Chennai/ Singapore||Mechanical and Hydro
|Exigo||Haryana||Mechanical||In house patents|
|Sungeel Hi-metal||Andhra Pradesh||Hydro Metallurgy||Sungeel, India|
|E-Parisaraa||Bangalore||Mechanical||In house patents|
|Surbine Recycling||Gujarat||Electro & Hydro
|In house patents|
Cost of Setting up a Battery Recycling Plant in India
When you are willing to start the lithium-ion Battery recycling Business in India, the same will depend on different aspects of how you operate the business. The basic cost on average to start up a business will include the following expenses:
- Facility or the premises will cost – Rs. 75000 or $1000/month
- Drop-off per unit will cost – 80,000 to 1 Lcs. or $1000 – $1500
- Equipment will include the cost – 5Lcs. to 7 Lcs. or $6500 – $7000
- Every staff costs at least 400-500 INR or $6/ Hr. So, it would take $1000 – $1500 a week.
- Then there are utilities that you can take $1000 extra for.
Therefore ultimately, it takes around 10,00,000 – 15,00,000 per month to operate the business smoothly. Plus, there are ways you can choose to cut down the costs a bit.
- To reduce the cost, instead of having individual drop off of recycling material if you collect the same in the form of dumpsters, it is less expensive as it will reduce the required workers for the task and their fees.
- Next, since there are many initiatives taken by the government, you can take help from the government to assist you in this welfare cause.
- Government support can give you subsidies, and let you have loans at lower costs too.
- Thus, before you start the Lithium-ion Battery recycling business in India, make sure you check with the grants you can get from the state.
Wrapping up the context we would say, seeing the surge in the battery demand due to the rise in EVs and the devices we use, recycling the batteries that have been used is indispensable.
Recycling the Li-Ion batteries would not only end up keeping the minerals at a safer place, but it will lead to environmental safety too. While giving new opportunities to the SSIs that would take up the recycling business of the lithium-ion batteries.
In the end, we would say, when the light of focus is on manufacturing batteries and assembling the same, think otherwise, see the future site and dig your hands into the Lithium-ion Battery recycling business, which is sure to flourish and does not require hefty investment too.
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