NITI Aayog Proposes Additional Incentives Under PLI Scheme for Recycled Battery Manufacturers – EQ
In Short : NITI Aayog has proposed additional incentives under the Production-Linked Incentive scheme to support manufacturers of recycled batteries. The move aims to strengthen India’s battery recycling ecosystem, reduce dependence on imported raw materials, and promote a circular economy. Enhanced support could encourage investment, innovation, and sustainable practices in the rapidly growing energy storage sector.
In Detail : NITI Aayog has recommended extending extra incentives under the Production-Linked Incentive scheme to companies engaged in manufacturing batteries using recycled materials. The proposal reflects a growing policy focus on sustainability, resource efficiency, and the need to develop a robust domestic ecosystem for battery production and recycling.
Battery recycling is emerging as a strategic priority as India scales up electric mobility and renewable energy storage. With demand for batteries expected to rise sharply, recycling can help recover critical minerals such as lithium, cobalt, and nickel, reducing dependence on imports and strengthening supply chain security.
The proposed additional sops are intended to make recycled battery manufacturing more economically viable. Recycling processes often involve high initial costs and advanced technology, and targeted incentives could help offset these challenges while encouraging wider adoption of sustainable production methods.
NITI Aayog has emphasized that incentivizing recycled batteries aligns with India’s broader goals of promoting a circular economy. By reusing materials and minimizing waste, battery recycling can significantly reduce environmental impact while extending the life cycle of valuable resources.
Enhanced incentives could also accelerate investment in recycling infrastructure and technology. Support under the PLI framework may encourage companies to invest in advanced recycling techniques, improve recovery rates, and scale operations to meet growing domestic demand.
The proposal is expected to benefit both established manufacturers and new entrants in the battery ecosystem. Startups and technology-driven firms focused on recycling innovation could gain a stronger foothold, fostering competition and technological advancement in the sector.
From an environmental perspective, promoting recycled batteries can help address concerns related to waste management and pollution. Proper recycling reduces the risks associated with improper disposal of used batteries, which can cause soil and water contamination.
The move also supports India’s clean energy and electric mobility ambitions. A strong recycling ecosystem ensures a more sustainable supply of battery materials, which is critical for achieving long-term targets for electric vehicles and energy storage deployment.
Overall, NITI Aayog’s push for additional incentives under the PLI scheme highlights the importance of integrating sustainability with industrial policy. By supporting recycled battery manufacturing, India can advance environmental goals, enhance resource security, and build a more resilient and competitive battery value chain.
