Unlocking a ₹755-billion circular battery boom, India races to manage soaring EV battery demand, retirement and second-life reuse before informal channels take over.
India is on the threshold of a ₹755 billion (approximately US$9 billion) opportunity as the country is moving to build a circular battery economy that spans reuse, repurposing, and recycling. According to a new report by RMI and India Foundation, battery demand is expected to rise more than fortyfold by 2050. India, therefore, has limited time to create an efficient system. If action is delayed, fragmented and informal pathways could take over as early end-of-life volumes are already emerging from commercial EV fleets.
The report sets out a unified strategy based on techno-economic modelling, policy reviews, and stakeholder consultations. It highlights that battery repurposing alone could unlock a ₹587.38 billion annual market by 2050, supported by robust unit economics.
Profitability modelling shows potential annual revenues of ₹754.69 billion against ₹560 billion in total costs, including ₹5.61 billion for collections, ₹38.91 billion for disassembly and testing, and ₹514.42 billion for repurposing operations; resulting in ₹195.76 billion in annual profit.
The report stated that between 2026 and 2048, the overall demand for batteries in India is projected to grow from 25 GWh to more than 1015 GWh. This growth is driven largely by LFP batteries, while NMC, NCA and emerging non-lithium chemistries maintain a smaller but consistent share. The sharp increase reflects the accelerating electrification of transport and stationary storage systems across the country.
Retired battery volumes are also expected to rise sharply. Today, these volumes are close to zero, but they could reach around 800 GWh by 2050. Collected volumes are anticipated to keep pace with this increase, signalling stronger collection networks and improved compliance as regulatory frameworks advance.
Repurposing potential is poised for a major surge after 2035. Volumes are projected to grow from 4 GWh in 2030 to 78 GWh by 2037, before climbing steeply to 594 GWh by 2050. This growth will be driven by large electric fleet batteries reaching the end of their first life and becoming available for second-life stationary applications.
Alongside repurposing, the report estimates 220 GWh of cumulative reuse potential between 2025 and 2050. Recycling could avoid 2.9 million tonnes of CO₂ equivalent and generate over 106,000 direct green jobs, while supplying more than 40% of India’s lithium, nickel, and cobalt needs by 2050.
The report identifies five enablers: policy reform, digital traceability, financing tools, technology development, and workforce training, as essential to scale circularity. It notes that battery circularity is now a strategic lever for India’s clean-energy leadership, resource security, and global competitiveness.
