New Delhi, Apr 25 (KNN) As electric vehicles (EVs) gain popularity in India, domestic e-waste recycling startups are positioning themselves to capitalise on a lucrative new revenue stream - recycling lithium-ion batteries from EVs reaching the end of their usable life cycle.

EVs started gaining traction in India around 2017-18, and the first wave of batteries from those early models are now nearing the end of their typical 5-8 year lifespan.

This emerging stream of end-of-life EV batteries has already impacted the volumes, revenues and profits of major Indian recyclers.

Nitin Gupta, co-founder and CEO of Attero Recycling, stated, "The first set of EVs sold in India is about to retire now, and some of the batteries have already started coming back to the market for recycling", reported FE.

In FY22, EV batteries accounted for just 6-7 per cent of BatX Energies' recycling volume. But in FY23, this segment more than doubled to around 15 per cent, and is estimated to reach 56 per cent by the end of FY24.

The financials highlight the vertical's pivotal role. BatX turned profitable in FY23 as its revenues surged over 4 times, while Lohum Cleantech's topline almost doubled with over 50 per cent coming from EV battery recycling.

With other major vehicle markets like Europe advancing EV adoption rapidly, the prospects look lucrative for Indian recyclers to expand globally. Attero plans to establish operations in the US and Europe this year itself.

A 2022 Niti Aayog report estimated India's potential for recycling Li-ion batteries at 128 GWh by 2030, with 46 per cent expected from the EV segment alone.

(KNN Bureau)