Second Life Applications of Lithium-ion Batteries in India

Abstract

This research investigates the development of second-life battery (SLB) strategies in the value chain of lithium-ion batteries in India by identifying how some companies are implementing circular economy practices and engaging with SLB strategies. The study adopts three analytical perspectives to examine SLB strategies in India: The Value Retention Option (VRO) model, barriers to implementation, and enabling factors. The study takes a qualitative content analysis approach using publicly available corporate documents, press releases, and strategic communications of the companies of focus as the sources of data. The study used purposeful sampling of five companies selected to demonstrate the different roles in the lithium-ion battery value chain, including producers, repurposers, and recyclers.

The results suggest that SLB strategies are being developed in India, but they are inconsistently embedded in the value chain. Companies that are in the innovation-oriented phase of the value chain, such as Vision Mechatronics and Lohum Cleantech, are repurposing predominantly. However, players in the market with an established presence, such as Amara Raja Energy & Mobility and Attero Recycling, are recycling due to clarity in regulations and predictable economic returns. The VRO analysis shows that many companies operate across VROs as there are overlaps in capabilities and operational requirements. Key barriers identified relate to unclear technical regulations, a lack of design standardisation, and no functional traceability system. Key enabling factors are related to a strong internal technical capacity, embedded, integrated operational models, and collaborative strategic partnerships.

This study makes theoretical contributions through the expanded application of the VRO model and the use of barrier/enabler frameworks in an emerging market context, and practical contributions through practical recommendations for policy makers and industry stakeholders. Policy makers can accelerate SLB adoption by including SLB compliance provisions within India's Battery Waste Management Rules, linking circular design to market incentives under the Production-linked Incentive (PLI) scheme, and developing national testing and traceability standards. The actions that industry actors should undertake consist of improved technical capabilities and cross-sector partnerships to scale-up efforts.

The findings from this study suggest that current SLB progress is driven more by entrepreneurial and technological innovations rather than coordinated policy. Effectively embedding SLB approaches into the status quo will involve clarity in regulations, targeted market incentives, and coordinated industry actions from stakeholders, which can assist with positioning SLBs as an essential pathway for India's transition to a sustainable resource-efficient circular economy.

Popular Abstract

As we move toward a clean energy transition, batteries are being applied everywhere, from electric vehicles to solar-powered homes. They are essential for enabling a future that relies on renewable energy. But what happens when the battery or energy storage solution no longer meets the demands of its original application? Simply discarding these batteries not only slows down the clean energy transition but also increases the demand for expensive and scarce raw materials like lithium, cobalt, and nickel. Recycling offers one solution, but before that stage, there is another important opportunity which is giving used batteries a “second life.”

Second-life batteries (SLBs) refer to batteries that have reached the end of their expected lifetimes, typically from electric vehicles or other usage, at which point they can no longer provide expected performance for high-utilization applications. When a battery still has usable capacity, typically 70-80% of its original capacity, capacity enough may exist for low-utilization applications. SLBs can be made into affordable backup systems for homes, commercial buildings, and telecom towers, as well as used as storage for renewable energy and to provide services to electricity grids. In India, where demand for electricity is high, outages are common, and deployment of renewable energy resources is increasing, SLBs can be a viable and potentially cost-effective solution to bridge the energy gap while reducing environmental impacts.

This thesis considers how companies in India are starting to act after a battery's first life has ended and the opportunities and challenges, they face in reusing or repurposing batteries. The research examines the practices of five firms and develops analysis through a categorization of technological, business, and policy factors that configure this emerging sector. The analysis suggests while technology development and business practices are developing rapidly, improved regulation and collaboration between actors is necessary.

For instance, startups such as Vision Mechatronics and BatX are seeking to utilize a new SLB opportunity through diagnostics, modular packs, and collaboration with the EV sector, while Lohum Cleantech has developed an integrated model based on both repurposing and recycling capabilities that can provide a reliable feedstock while delivering second-life energy storage systems. Larger firms such as Amara Raja and Attero Recycling are not innovating similarly and are primarily focused on recycling - the decision is less complicated than evaluating potential second-life pathways due to a more stable regulatory regime, and clearer paybacks for clients. Thus, there is a policy-practice gap, as innovators are advancing with SLBs, while established enterprises are continuing to work in recycling because, while they support the notion of second life, they are waiting for regulators to assist actual pathways.

If effectively supported, SLBs could play a vital role in making India’s energy system more sustainable, affordable, and resilient. They have the potential to reduce the cost of energy storage while supporting the integration of renewable power, improve energy access in rural and off-grid communities through microgrids, and lower environmental impacts by extending the lifespan of batteries and delaying recycling. At the same time, they can also generate new employment opportunities in areas such as diagnostics, refurbishment, logistics, and system integration. In simple terms, SLBs represent more than a technical fix, they are a social and environmental opportunity. By extending the life of used batteries, India can conserve resources, strengthen its energy security, and accelerate the circular economy. With the right mix of clear policies, incentives, and industry collaboration, SLBs could move from being small-scale pilots to becoming an essential part of India’s sustainable future.

• author: Sharath, Prajwal
• supervisor: Evgenii Petelin
• organization: Department of Energy Sciences
• course: MVKM05 20251
• year: 2025
• type: H2 - Master's Degree (Two Years)
• subject: Technology and Engineering
• keywords: Second-life batteries (SLBs), Lithium-ion batteries (LIBs), Circular economy, Value Retention Options (VRO), Barriers and enablers, Indian Battery Manufacturing
• report number: ISRN LUTMDN/TMPH-25/5662-SE
• ISSN: 0282-1990
• language: English
• id: 9213077
• date added to LUP: 2025-09-25 09:12:38
• date last changed: 2025-09-26 11:38:11