India’s battery recycling sector has transitioned from a niche environmental activity to a strategic pillar of national material security. Driven by the explosion in Electric Vehicle (EV) adoption and a flurry of new regulations, the industry is racing to turn “urban mines” into a steady supply of lithium, cobalt, and nickel.
The Indian battery recycling market is valued at approximately $2.16 billion in FY2024 and is projected to surge to $4.56 billion by 2032, maintaining a CAGR of nearly 10%, according to a study by NITI Aayog.
“Battery recycling is increasingly resembling a specialty chemicals business rather than a waste-processing industry,” Vinayak Singhal, Asst. Vice President, LOHUM said.
LOHUM, a producer of sustainable critical minerals and advanced materials claims to be positioning itself at the center of that shift, betting that refining, not recycling alone, will define the next phase of growth.
For much of the past decade, the industry remained confined to producing “black mass”, an intermediate containing lithium, nickel and cobalt recovered from used batteries. This material was largely exported for further processing, limiting domestic value addition and reinforcing India’s dependence on imported battery-grade chemicals.
LOHUM claims that its strategy is built on capturing that lost value. The company claims to have invested in refining capabilities that convert intermediate outputs into battery-grade carbonates and sulphates, high-purity metals, cathode active materials (CAM) and industrial catalysts, segments that command significantly higher margins than raw intermediates.
From recycling to refining
This transition requires a fundamentally different technological base. Unlike traditional scrap processing, refining depends on industrial-scale hydrometallurgy, precision leaching, solvent extraction and crystallization, capabilities more aligned with specialty chemicals manufacturing.
LOHUM claims to have built its platform around these processes, enabling it to process diverse feedstocks, from end-of-life batteries to manufacturing scrap and industrial intermediates, into high-purity outputs at scale.
The model is also expanding the company’s presence across the value chain. Beyond battery-grade chemicals, LOHUM is diversifying into cathode materials, industrial catalysts and rare-earth permanent magnets, positioning itself across multiple segments of the clean energy and advanced manufacturing ecosystem.
Currently, lead-acid batteries still dominate the recycling volume (approx. 55% share) due to a mature 90%+ recovery rate infrastructure.
Industry estimates suggest recycling could meet nearly 48% of India’s lithium-ion battery material demand by 2030, creating a significant opportunity for domestic refiners.
At the same time, policy is formalising the sector. The Battery Waste Management Rules, anchored in an Extended Producer Responsibility (EPR) framework, had introduced a market-linked system of tradable compliance certificates in 2022, incentivising formal recycling and directing waste flows toward authorised players.
Additional measures, including duty exemptions on battery scrap and proposals to allow regulated imports of high-value scrap, are expected to further strengthen feedstock availability.
