What Are The Key Hurdles In Li-Ion Battery Recycling? Recyclekaro Explains

Q: How did the journey of Recyclekaro begin and what have been the key milestones?

Our journey began in 2010 as a mission-driven college movement focused on awareness around waste management. Over time, it evolved into a structured business handling waste paper from households, housing complexes, industries, and large corporations.

As operations scaled, we realised the need to address more complex waste streams where India lacked proper infrastructure. Paper and plastic recycling were our initial focus until 2014. Post that, we entered e-waste recycling, sourcing material from large organisations, residential complexes, and industries, and recycling it scientifically into end-of-life materials that could be reintroduced into the industrial ecosystem.

Initially, our work was limited to dismantling—separating ferrous metals, copper, plastics, and PCB-containing components. As volumes increased, we built in-house recycling capabilities. In 2018, we commissioned a plant in Vada Palghar to recycle PCBs, one of the most complex electronic components.

We started with a capacity of about 5,000 metric tonnes in 2018. In 2020, we expanded into lithium-ion and other battery chemistries. Today, our capacity stands at 24,500 metric tonnes for e-waste and 10,000 metric tonnes for batteries. We are also actively working on recovering rare earth elements from neodymium magnets, motors, and EV waste streams.

What materials are you recovering through Li-ion battery recycling? 

The primary materials we recover are cobalt, lithium, nickel, and other cathode-grade materials. At present, we are among the largest cobalt recyclers in India.

Since India does not yet have industrial-scale battery cell manufacturing, these materials are used in sectors such as paints and pigments, pharmaceuticals, and electronics manufacturing. However, from 2026 onwards, battery and electronics manufacturers will be required to use at least 5% recycled material, rising to 25% by 2030. Once large-scale cell manufacturing begins in India, recycling will become a critical domestic supply source, especially given the country’s limited mining and refining capabilities.

How you deal with the extracted black mass from batteries?

Black mass is only an intermediate product. We do not export black mass—we consume it. We procure black mass from recyclers who operate only up to that stage and also generate it in-house from batteries sourced directly from industry. 

Black mass exports are officially banned. India’s actual operational recycling capacity is limited, despite a large number of registered recyclers—many of whom exist only on paper.

What is your current recycling capacity?

Our annual capacity is 24,500 metric tonnes for e-waste and 10,000 metric tonnes for lithium-ion battery chemistries. We operate three facilities in Vada Palghar, one in Hyderabad, and one in Noida.

With solar increasingly integrated with battery storage, do you see new recycling opportunities?

Absolutely. Many battery energy storage systems (BESS) already use refurbished batteries sourced from EVs and other applications. We work with solar companies to recycle end-of-life batteries once they are no longer suitable for second-life use.

As regulations tighten, feedstock availability is increasing because companies can no longer sell waste to unauthorised recyclers. We are also planning to introduce in-house battery refurbishment, which could serve BESS manufacturers effectively.

Is the EV sector your primary source of batteries?

EVs have become a significant source only in the last two to three years. Batteries typically last five to eight years, so EVs sold around 2017–18 are now reaching end-of-life.

Other sources include battery manufacturers’ rejected stock, BESS companies, ICE vehicle batteries, and lithium-ion batteries from consumer electronics such as mobile phones and laptops.

How does the EPR framework apply across battery chemistries?

Currently, EPR mandates are not chemistry-specific. We have proposed differentiated treatment because lead-acid batteries are significantly heavier than lithium-ion batteries, which skews credit calculations. Regulatory clarity on this is likely to take another one to two years.

How do you secure feedstock? 

Feedstock comes primarily from two channels. First, companies with end-of-life products, faulty components, or dead stock. Second, through EPR compliance, where producers must purchase recycling credits annually.

We have worked with most leading two- and four-wheeler EV manufacturers, including Ather, Ola, Bajaj, Tata Group, and Reliance Industries. These partnerships are usually non-exclusive and tender-based.

Q: What are the biggest challenges facing the formal recycling industry today?

The biggest challenge is competition from the informal sector, which often refurbishes products and can offer higher prices for waste.

Another major issue is greenwashing. Several registered recyclers generate EPR credits without real processing, undercutting compliant recyclers. Lastly, waste collection largely falls on recyclers themselves. Government-led collection drives and public awareness—similar to wet and dry waste segregation—are essential to improve formal channelisation.

How does your revenue model work?

In India, recyclers typically pay to procure end-of-life batteries and e-waste. Revenue is generated by selling recovered materials such as cobalt, lithium, nickel, gold, silver, and platinum-group metals into domestic markets.

EPR credits form another revenue stream, though current market rates are below government-mandated levels and remain under legal scrutiny. Recycling is not always capital-positive, which is why a robust and transparent EPR framework is critical.