Energy Sovereignty and Recycling: The case of Lithium Batteries in India

Abstract:

India has embarked on an ambitious trajectory for energy transition, decarbonization, and greenhouse gas (GHG) reduction. This includes a commitment to achieve 50% of its energy mix from non-fossil sources by 2030—already reached ahead of schedule—and to accelerate electric vehicle (EV) adoption, targeting around 30% of car sales by then, up from nearly 2% today. At the core of this electrification drive lie lithium-ion batteries, the true "cornerstones" of clean mobility and energy storage, with EV sales nearing one million units in 2022 fuelling massive demand.
Lacking domestic lithium mines, India remains highly dependent on foreign imports—primarily from China and South Korea—for critical minerals (lithium, cobalt, nickel) and key components, with values surging from $384.6 million in 2019 to $2.8 billion in 2023. This vulnerability undermines its climate goals and exposes industries to global supply chain geopolitics. In this context, the paper questions how India seeks to convert its critical material dependencies into a sovereignty strategy, hypothesizing that lithium recycling emerges as a diplomatic, environmental, and economic development tool.
Who are the key players across the lithium value chain, how do they interact in its governance, and does their presence enable India to carve out a role in the global lithium value chain? To trace the contemporary history of lithium in India—its global market ties and specificities—the analysis delves into three pivotal actors in the sector: major corporations, startups, and informal recyclers, across field sites in Delhi, Chennai, and Bangalore.