The battery manufacturer aims to boost the use of recycled lead in production by recycling lead in-house.
Amara Raja Energy and Mobility Ltd is set to commence commercial operations at its new lead acid battery recycling facility in Tamil Nadu by the end of November. This initiative is part of the company’s strategy to increase the use of recycled lead in its manufacturing processes. The plant, situated in Cheyyar under the subsidiary Amara Raja Circular Solutions, aims to eventually meet 25-30% of the company’s overall raw material needs.
With a planned capacity of 1.5 lakh metric tons per annum, the facility will roll out its capacity in phases, starting with 1 lakh metric tons in the first phase. The plant is equipped with cutting-edge technologies, including a de-sulphurization system and oxy-fuel technology. These advancements are expected to significantly reduce CO2 emissions and minimize lead content in slag, enhancing both efficiency and environmental sustainability.
Recycling is critical for Amara Raja, as it not only promises long-term cost efficiency and supply chain resilience but also reduces the environmental impact of battery waste. The company’s recycling efforts are an integral part of its end-of-life product reclamation process, covering procurement, processing, waste generation, and recovery. Currently, 83% of the lead used in manufacturing comes from recycled sources.
Amara Raja Circular Solutions manages a closed-loop system that involves procuring old batteries, recycling them through third-party recyclers, and using the recovered lead for new battery production. In compliance with government mandates, the company has met its recovery targets, with mandated recovery rates set to increase annually.
The financial benefits of the recycling operation are also notable, with expectations of reduced material costs. The CFO of Amara Raja noted potential material cost reductions of about 1.5-2% if lead recovery efficiency improves by 2-3%. This reflects the company’s proactive approach to sustainable manufacturing and cost management.
