SDG 7: Affordable and Clean Energy | SDG 9: Industry, Innovation and Infrastructure | SDG 12: Responsible Consumption and Production
NITI Aayog | Ministry of Environment, Forest and Climate Change (MoEFCC) | MeitY | Ministry of Mines
NITI Aayog report titled Advancing Circular Economy of Waste Electronic and Electrical Equipment (E-waste) and Lithium-Ion Batteries in India outlines India's efforts to establish a circular economy for E-waste and Lithium-ion batteries.
India is witnessing an exponential surge in electronic waste (e-waste), projected to reach 14 million metric tonnes (MMT) by 2030, and a 15-fold increase in Lithium-ion Battery (LIB) demand by 2035. These waste streams contain critical minerals like Lithium, Cobalt, and Nickel, for which India is currently 75–100% import-dependent. Transforming these materials into a “strategic resource reservoir” is essential for India’s Net Zero 2070 goals and the vision of Viksit Bharat 2047.
Addressing Systemic Gaps and the Informal Sector Despite a formal recycling capacity of ~1.75 MMT, the unregulated informal sector still processes 78% of India’s e-waste.
Efficiency Gap: The informal sector achieves only 10–20% material recovery compared to 95–97% in formal facilities, leading to an annual economic loss of ~₹51,000 crore.
Regulatory Hurdles: Extended Producer Responsibility (EPR) coverage is currently limited to only four metals (Gold, Copper, Iron, Aluminum), discouraging investment in critical mineral recovery.
Compliance Issues: Weak monitoring allows for fraudulent EPR certification, while the lack of GSTN-EPR portal integration hinders invoice verification and material traceability.
Operational and Technical Roadmap The report outlines key interventions to formalize the ecosystem and enhance recovery:
Differentiated EPR: Developing chemistry-specific EPR pricing for low-value batteries like Lithium Ferro Phosphate (LFP) to ensure recycling remains financially viable.
Standards and Certification: Updating BIS certification (IS 16046) to include mandatory chemical composition testing and establishing purity standards for recycled materials.
Inclusive Formalization: Establishing Common Facility Centres (CFCs) and simplified registration pathways to transition informal workers into the formal workforce.
What is the “EPR-GSTN Integration” in the context of battery recycling? EPR-GSTN integration refers to the proposed linking of the Extended Producer Responsibility (EPR) portal with the Goods and Services Tax Network (GSTN). This allows regulators to cross-verify physical recycling claims against financial invoices, effectively deterring fraudulent EPR transactions and ensuring that the materials reported as recycled have actually been processed through formal channels.
Policy Relevance
Advancing the circular economy for e-waste and LIBs is a strategic necessity to reduce exposure to volatile global supply chains.
Critical Mineral Security: Enhanced recycling can provide a reliable domestic source of minerals essential for EV mobility and Energy Storage Systems (ESS).
Fiscal Incentives: Leveraging the Production Linked Incentive (PLI) scheme for Advanced Chemistry Cells (ACC) can create a stable market for domestically recycled cathode materials.
Carbon Market Integration: Developing methodologies to earn Carbon Credit Certificates (CCC) from recycling provides an additional revenue stream to offset high advanced processing costs.
Environmental Stewardship: Formalizing the sector mitigates massive soil and water contamination by heavy metals (Lead, Mercury, Cadmium) currently seen in informal clusters.
Follow the full report here: Advancing Circular Economy of Waste Electronic and Electrical Equipment (E-waste) and Lithium-Ion Batteries in India