Lithium Ion Battery Manufacturing Plant setup - Overview
Lithium is a non-ferrous metal and a key component in EV batteries. It is proposed that for a green future, minerals such as lithium are as essential as oil and gas are today. It's in the strategic interest of India not just to protect the mineral but also to set up the required lithium-ion battery manufacturing plant within the country. Notably, the cumulative energy storage requirement from EVs and utility-scale storage is estimated to be 903 GWh between 2029-30. An investment of around 4.5 billion USD is needed to establish 50 GWh of lithium-ion battery manufacturing plant under Production Linked Incentive (PLI) scheme. Also, the Government of India (GoI) wants to promote local manufacturing of lithium-ion batteries by introducing incentive schemes like FAME. Moreover, the GoI has introduced specific rules to facilitate simultaneously setting up manufacturing and lithium-ion battery recycling plant. Here are the complete details.
Lithium-ion battery manufacturing process
The lithium-ion battery manufacturing process involves three main stages -
i. electrode manufacturing
ii. cell assembly, and
iii. cell finishing.
Each stage involves sub-processes that start with coating the anode and cathode. This is followed by assembling the different components and eventually packing and testing the batteries.
Responsibilities of lithium-ion battery manufacturers as per Battery Waste Management Rules, 2001
It is the responsibility of a lithium-ion battery manufacturer to -
(i) guarantee that the used batteries are collected back according to the Schedule against new batteries sold except those sold to original equipment manufacturer (OEM) and bulk consumer(s);
(ii) guarantee that used batteries collected back are of the same type & features as that of the new batteries sold;
(iii) submit a half-yearly return of their sales & buy-back to the state board in Form-I, at most by 30th June and 31st December annually;
(iv) establish collection centres, either individually or jointly at several places for the collection of used batteries from consumers or dealers;
(v) guarantee that used batteries collected are sent only to the registered recyclers;
(vi) guarantee that necessary arrangements are made with dealers for safe transportation from collection centres to the sites of registered recyclers;
(vii) guarantee that no damage to the environment occurs during transportation;
(viii) create public awareness via advertisements, publications, posters or by other methods related to the following-
- (a) lead hazards; and
- (b) responsibility of consumers to give their used batteries only to the dealers or deliver them at designated collection centres; and
- (c) addresses of dealers and designated collection centres.
(ix) use the international recycling sign on the batteries;
(x) buy recycled lead only from registered recyclers; and
(xi) alert the state board or the MoEF&CC (Ministry of Environment, Forest and Climate Change) for any violation by the dealers.
(xii) guarantee that the new batteries are sold only to the registered dealers.
Mechanism of implementing the BWM Rules, 2001
- The BWM rules mandate to file of half-yearly returns on the collection and sale of used batteries and quantities sent to registered/authorised recyclers.
- Manufacturers are needed to manage channelisation via their dealer network and also via their collection centres. One of the manufacturers' primary responsibilities is to create consumer awareness and implement a take-back system for the end-of-life batteries they manufacture.
BWM Rules, 2022
These rules apply to manufacturers, producers and entities engaged in manufacturing lithium-ion batteries. Moreover, BWM Rules apply to all types of batteries regardless of shape, chemistry, volume, weight, material composition and use.
However, these rules don't apply to batteries used in
- (i) devices related to the protection of essential security interests like arms, ammunition, war material, and those explicitly intended for military purposes; and
- (ii) equipment designed to be sent into space.
Types of battery
An automotive battery is used for lighting, automotive starter or ignition power.
A battery is a new or refurbished battery/cell/their component, such as an accumulator, which is any source of electrical energy produced by direct conversion of chemical energy and includes a disposable primary or secondary battery.
An end-of-life battery is a battery that has been utilised, completed its intended use and is not created for refurbishment.
A portable battery is a battery that is not intended for industrial purposes, is sealed, less than five kgs, EV, or is to be utilised as an automotive battery.
An industrial battery any battery intended for industrial uses, except portable, EV and automotive batteries. These can include sealed batteries (except potable batteries), unsealed batteries (except automotive batteries), and energy storage system batteries.
A used battery a battery along with its components that have been used, have residual life and are ideal for refurbishment.
Waste battery includes:
- Used/end-of-life battery or its spares/components/parts/consumables, which may not or may be hazardous;
- Pre-consumer off-spec battery and its spares/components/parts/consumables;
- Battery whose date for appropriate use has expired;
- A battery that the user has discarded.
Definitions
A battery is a refurbished or new cell/battery/their components, such as accumulator, which is any means of electrical energy produced by direct conversion of chemical energy & includes disposable primary/secondary battery;
A manufacturer is a person/an entity/a company as outlined in the Companies Act or a factory as in the Factories Act, 1948 (63 of 1948) having facilities for manufacturing of battery and/or its components;
A battery pack is any set or module of cells/batteries that is encapsulated or connected within an outer casing to form a complete unit that the end user is not willing to split up or open;
Battery materials are materials in the battery, including metals like cobalt, nickel, lead, lithium and other materials like paper, plastics, etc.;
Extended Producer Responsibility (EPR) is the responsibility of any producer of battery for environmentally sound management of waste battery;
Extended Producer Responsibility (EPR) Registration is a registration by the CPCB (Central Pollution Control Board) of a producer for EPR; and
A producer is an entity involved in the manufacture & sale of batteries, including refurbished batteries and equipment, under its own brand.
Functions of a producer/manufacturer
A lithium-ion battery producer/manufacturer must provide the EPR plan in Form 1(C) to Central Pollution Control Board (CPCB) by 30th June annually for the battery manufactured in the preceding financial year. It must have information on the quantity, battery weight and dry weight of battery materials via the centralised portal.
The producer/manufacturer must submit an EPR Plan in Form 1(C) to CPCB for the battery manufactured in FY 2022-23 within three months of the publication of BWM rules, 2022.
Standard Operating Procedure (SOP) for the registration of producers and entities engaged in lithium-ion battery manufacturing with CPCB according to the BWM Rules, 2022
The SOP guides the application filing by manufacturers and the processing of applications by CPCB.
Guidance for application filing by lithium-ion battery manufacturers
The process of application filing starts with signing up by Manufacturers on the web portal www.eprbatterycpcb.in. This is followed by applying in 6 parts, namely -
(A) General information of Producer
(B) Information on the Type of Battery
(C) Addition of Sales Data
(D) Addition of Battery Material
(E) Uploading of required Documents and
(F) Payment of Fees
Applicability of SOP
The SOP applies to all lithium-ion battery manufacturers seeking registration under Battery Waste Management Rules, 2022. Manufacturers must submit the online application along with the relevant information, documents and application fees for registration.
Applications under process for grant of registration must subsequently be processed at https://egovernancecpcb.co.in/battery/ portal created by CPCB according to the provisions of this SOP.
General requirements
- Battery Type
- Quantity Sold in Sale year (Dry wt. in kg)
- Self-declaration of sales data
- Percentage composition of Materials in Battery
- Enter GST Number
- Company PAN Card
- Company CIN Number
- Company TIN No
- Consent Issued under Air/Water Act (CTE and CTO)
- Hazardous waste AuthorisationAuthorisation
- District Industries Center (DIC) Registration
- DGFT Licence
- Import Export Certificate in case of importers (IEC)
- Declaration and payment of fees as per the annual turnover/ Revenue of the company
Frequently Asked Questions
-
1. What are the application and annual processing fees for registration?
The applicant must pay the application fees according to the details below, along with the application for Registration:
S. No.
Annual Turnover/Revenue (in cr.)
Application Fee (in Rs.)
1.
Less than 5
10,000
2.
5-50
20,000
3.
Greater than 50
40,000
- i. Fees for registration renewal are the same as the registration fee.
- ii. The fees must be paid online via the payment gateway integrated into the portal.
- iii. Application Fees are exclusive of any transaction charges.
-
2. What are the types of producers?
The following are the types of producers -
- Manufactures and sells new batteries under its own brand
- Manufactures and sells new battery equipment under its own brand
- Manufactures and sells refurbished battery equipment under its own brand
- Manufactures and sells refurbished batteries under its own brand
- Manufactures new batteries and sells to other manufacturers under their own brand name or no brand
-
3 . What are the targets for portable Batteries used in rechargeable consumer electronics?
No.
Compliance Cycle
Year
Mandatory Waste Battery collection target and 100% of refurbishment or recycling of the collection target (Weight)
Mandatory Waste Battery collection target and 100% refurbishment and/or recycling target for every ten-year cycle (Weight)
(i)
2022-23 to 2031-32
2022-23
Minimum 50% of the quantity of Battery placed in the market in 2017-18.
Collection of 100% Waste Battery and 100% of refurbishment or recycling shall be mandatory by the end of the ten-year compliance cycle (end of the 10th year) against the Battery placed in the market during the ten-year compliance cycle.
However, there may be a carry forward of up to 60% of the average quantity of Battery placed in the market per year during the ten-year cycle to the next compliance cycle.
(ii)
2023-24
Minimum 60% of the quantity of Battery placed in the market in 2018-19.
(iii)
2024-25
Minimum 70% of the quantity of Battery placed in the market in 2019-2020.
(iv)
2025-26
Minimum 70% of the quantity of Battery placed in the market in 2020-21.
(v)
2026-27
Minimum 70% of the quantity of Battery placed in the market in 2021-22.
(vi)
2027-28
Minimum 70% of the quantity of Battery placed in the market in 2022-23.
(vii)
2028-29
Minimum 70% of the quantity of Battery placed in the market in 2023-24.
(viii)
2029-30
Minimum 70% of the quantity of Battery placed in the market in 2024-25.
(ix)
2030-31
Minimum 70% of the quantity of Battery placed in the market in 2025-26.
(x)
2031-32
Minimum 70% of the quantity of Battery placed in the market in 2026-27.
(xi)
2032-33 to 2041-42 and onwards
2032-33 and onwards
Minimum 70% of the quantity of Battery placed in the market in the 5th preceding financial year (i.e. 2027-28) and onwards.
Collection of 100% Waste Battery and 100% of refurbishment or recycling shall be mandatory by the end of the ten-year compliance cycle (end of the 10th year) against the Battery placed in the market during the ten-year compliance cycle.
However, there may be a carry forward of up to 60% of the average quantity of Battery placed in the market per year during the ten-year cycle to the next compliance cycle.
-
4. What are the targets for portable Batteries except those used in rechargeable consumer electronics?
No.
Compliance Cycle
Year
Mandatory Waste Battery collection target and 100% of refurbishment or recycling of the collection target (Weight)
Mandatory Waste Battery collection target and 100% refurbishment and/or recycling target for every ten-year cycle (Weight)
(i)
2025-26 till 2034-35
2025-26
Minimum 50% of the quantity of Battery placed in the market in 2022-23.
Collection of 100% Waste Battery and 100% of refurbishment or recycling shall be mandatory by the end of the ten-year compliance cycle (end of the 10th year) against the Battery placed in the market during the ten-year compliance cycle.
However, there may be a carry forward of up to 60% of the average quantity of Battery placed in the market per year during the ten-year cycle to the next compliance cycle.
(ii)
2026-27
Minimum 60% of the quantity of Battery placed in the market in 2023-24.
(iii)
2027-28
Minimum 70% of the quantity of Battery placed in the market in 2024-25.
(iv)
2028-29
Minimum 70% of the quantity of Battery placed in the market in 2025-26.
(v)
2029-30
Minimum 70% of the quantity of Battery placed in the market in 2026-27.
(vi)
2030-31
Minimum 70% of the quantity of Battery placed in the market in 2027-28.
(vii)
2031-32
Minimum 70% of the quantity of Battery placed in the market in 2028-29.
(viii)
2032-33
Minimum 70% of the quantity of Battery placed in the market in 2029-30.
(ix)
2033-34
Minimum 70% of the quantity of Battery placed in the market in 2030-31.
(x)
2034-35
Minimum 70% of the quantity of Battery placed in the market in 2031-32.
(xi)
2035-36 till 2044-45 and onwards
2035-36 and onwards
Minimum 70% of the quantity of Battery placed in the market in the 5th preceding financial year (i.e. 2032-33) and onwards.
Collection of 100% Waste Battery and 100% of refurbishment or recycling shall be mandatory by the end of the ten-year compliance cycle (end of the 10th year) against the Battery placed in the market during the ten-year compliance cycle.
However, there may be a carry forward of up to 60% of the average quantity of Battery placed in the market per year during the ten-year cycle to the next compliance cycle.
-
5. What are the targets for automotive Batteries?
No.
Compliance Cycle
Year
Mandatory Waste Battery collection target and 100% of refurbishment or recycling of the collection target (Weight)
Mandatory Waste Battery collection target and 100% refurbishment and/or recycling target for every ten-year cycle (Weight)
(i)
2022-23 till 2028-29
2022-23
Minimum 30% of the quantity of Battery placed in the market in 2019-20.
Collection of 100% Waste Battery and 100% of refurbishment or recycling shall be mandatory by the end of the seven-year compliance cycle (end of 7th year) against the Battery placed in the market during the seven-year compliance cycle.
However, there may be a carry forward of up to 20% of the average quantity of Battery placed in the market per year during the seven-year cycle to the next compliance cycle.
(ii)
2023-24
Minimum 50% of the quantity of Battery placed in the market in 2020-21.
(iii)
2024-25
Minimum 70% of the quantity of Battery placed in the market in 2021-22.
(iv)
2025-26
Minimum 90% of the quantity of Battery placed in the market in 2022-23.
(v)
2026-27
Minimum 90% of the quantity of Battery placed in the market in 2023-24.
(vi)
2027-28
Minimum 90% of the quantity of Battery placed in the market in 2024-25.
(vii)
2028-29
Minimum 90% of the quantity of Battery placed in the market in 2025-26.
(viii)
2029-30 till 2035-36 and onwards
2029-2030 and onwards
Minimum 90% of the quantity of Battery placed in the market in the 3rd preceding financial year (i.e. 2026-27) and onwards.
Collection of 100% Waste Battery and of 100% of refurbishment or recycling shall be mandatory by the end of the ten-year compliance cycle (end of 7th year) against the Battery placed in the market during the seven-year compliance cycle.
However, there may be a carry forward of up to 20% of the average quantity of Battery placed in the market per year during the seven-year cycle to the next compliance cycle.
-
6. What are the targets for industrial Battery?
No.
Compliance Cycle
Year
Mandatory Waste Battery collection target and 100% of refurbishment or recycling of the collection target (Weight)
Mandatory Waste Battery collection target and 100% refurbishment and/or recycling target for every ten-year cycle (Weight)
(i)
2022-23 till 2028-29
2022-23
Minimum 40% of the quantity of Battery placed in the market in 2019-20.
Collection of 100% Waste Battery and 100% of refurbishment or recycling shall be mandatory by the end of the seven-year compliance cycle (end of 7th year) against the Battery placed in the market during the seven-year compliance cycle.
However, there may be a carry forward of up to 60% of the average quantity of Battery placed in the market per year during the seven-year cycle to the next compliance cycle.
(ii)
2023-24
Minimum 50% of the quantity of Battery placed in the market in 2020-21.
(iii)
2024-25
Minimum 60% of the quantity of Battery placed in the market in 2021-22.
(iv)
2025-26
Minimum 70% of the quantity of Battery placed in the market in 2022-23.
(v)
2026-27
Minimum 70% of the quantity of Battery placed in the market in 2023-24.
(vi)
2027-28
Minimum 70% of the quantity of Battery placed in the market in 2024-25.
(vii)
2028-29
Minimum 70% of the quantity of Battery placed in the market in 2025-26.
(viii)
2029-30 till 2035-36 and onwards
2029-2030 and onwards
Minimum 70% of the quantity of Battery placed in the market in the 3rd preceding financial year (i.e. 2026-27) and onwards.
Collection of 100% Waste Battery and of 100% of refurbishment or recycling shall be mandatory by the end of the ten-year compliance cycle (end of 7th year) against the Battery placed in the market during the seven-year compliance cycle.
However, there may be a carry forward of up to 60% of the average quantity of Battery placed in the market per year during the seven-year cycle to the next compliance cycle.
-
7. What are the targets for Electric Vehicles (EV) Batteries of E-rickshaw (three-wheelers)?
No.
Compliance Cycle
Year
Mandatory Waste Battery collection target and 100% of refurbishment or recycling of the collection target (Weight)
Mandatory Waste Battery collection target and 100% refurbishment and/or recycling target for every ten-year cycle (Weight)
(i)
2024-25 till 2030-31
2024-2025
Minimum 70% of the quantity of Battery placed in the market in 2021-22.
Collection of 100% Waste Battery and 100% of refurbishment or recycling shall be mandatory by the end of the seven-year compliance cycle (end of 7th year) against the Battery placed in the market during the seven-year compliance cycle.
However, there may be a carry forward of up to 60% of the average quantity of Battery placed in the market per year during the seven-year cycle to the next compliance cycle.
(ii)
2025-26
Minimum 70% of the quantity of Battery placed in the market in 2022-23.
(iii)
2026-27
Minimum 70% of the quantity of Battery placed in the market in 2023-24.
(iv)
2027-28
Minimum 70% of the quantity of Battery placed in the market in 2024-25.
(v)
2028-29
Minimum 70% of the quantity of Battery placed in the market in 2025-26.
(vi)
2029-30
Minimum 70% of the quantity of Battery placed in the market in 2026-27.
(vii)
2030-31
Minimum 70% of the quantity of Battery placed in the market in 2027-28.
(viii)
2031-32 till 2037-38 and onwards
2031-2032 and onwards
Minimum 70% of the quantity of Battery placed in the market in the 3rd preceding financial year (i.e. 2028-29) and onwards.
Collection of 100% Waste Battery and of 100% of refurbishment or recycling shall be mandatory by the end of the ten-year compliance cycle (end of 7th year) against the Battery placed in the market during the seven-year compliance cycle.
However, there may be a carry forward of up to 60% of the average quantity of Battery placed in the market per year during the seven-year cycle to the next compliance cycle.
-
8. What are the targets for Electric Vehicle (EV) Batteries of two-wheelers?
No.
Compliance Cycle
Year
Mandatory Waste Battery collection target and 100% of refurbishment or recycling of the collection target (Weight)
Mandatory Waste Battery collection target and 100% refurbishment and/or recycling target for every ten-year cycle (Weight)
(i)
2026-27 till 2032-33
2026-27
Minimum 70% of the quantity of Battery placed in the market in 2022-23.
Collection of 100% Waste Battery and 100% of refurbishment or recycling shall be mandatory by the end of the seven-year compliance cycle (end of 7th year) against the Battery placed in the market during the seven-year compliance cycle.
However, there may be a carry forward of up to 60% of the average quantity of Battery placed in the market per year during the seven-year cycle to the next compliance cycle.
(ii)
2027-28
Minimum 70% of the quantity of Battery placed in the market in 2023-24.
(iii)
2028-29
Minimum 70% of the quantity of Battery placed in the market in 2024-25.
(iv)
2029-30
Minimum 70% of the quantity of Battery placed in the market in 2025-26.
(v)
2030-31
Minimum 70% of the quantity of Battery placed in the market in 2026-27.
(vi)
2031-32
Minimum 70% of the quantity of Battery placed in the market in 2027-28.
(vii)
2032-33
Minimum 70% of the quantity of Battery placed in the market in 2028-29.
(viii)
2033-34 till 2039-40 and onwards
2033-2034 and onwards
Minimum 70% of the quantity of Battery placed in the market in the 4th preceding financial year (i.e. 2029-30) and onwards.
Collection of 100% Waste Battery and of 100% of refurbishment or recycling shall be mandatory by the end of the ten-year compliance cycle (end of 7th year) against the Battery placed in the market during the seven-year compliance cycle.
However, there may be a carry forward of up to 60% of the average quantity of Battery placed in the market per year during the seven-year cycle to the next compliance cycle.
-
9. What are the targets for Electric Vehicle (EV) Batteries of four-wheelers?
No.
Compliance Cycle
Year
Mandatory Waste Battery collection target and 100% of refurbishment or recycling of the collection target (Weight)
Mandatory Waste Battery collection target and 100% refurbishment and/or recycling target for every ten-year cycle (Weight)
(i)
2029-30 till 2042-43
2029-30
Minimum 70% of the quantity of Battery placed in the market in 2021-22.
Collection of 100% Waste Battery and 100% of refurbishment or recycling shall be mandatory by the end of the fourteen-year compliance cycle (end of the 14th year) against the Battery placed in the market during the fourteen-year compliance cycle.
However, there may be a carry forward of up to 60% of the average quantity of Battery placed in the market per year during the fourteen-year cycle to the next compliance cycle.
(ii)
2030-31
Minimum 70% of the quantity of Battery placed in the market in 2022-23.
(iii)
2031-32
Minimum 70% of the quantity of Battery placed in the market in 2023-24.
(iv)
2032-33
Minimum 70% of the quantity of Battery placed in the market in 2024-25.
(v)
2033-34
Minimum 70% of the quantity of Battery placed in the market in 2025-26.
(vi)
2034-35
Minimum 70% of the quantity of Battery placed in the market in 2026-27.
(vii)
2035-36
Minimum 70% of the quantity of Battery placed in the market in 2027-28.
(viii)
2036-37
Minimum 70% of the quantity of Battery placed in the market in 2028-29.
(ix)
2037-38
Minimum 70% of the quantity of Battery placed in the market in 2029-30.
(x)
2038-39
Minimum 70% of the quantity of Battery placed in the market in 2030-31.
(xi)
2039-40
Minimum 80% of the quantity of Battery placed in the market in 2031-32.
(xii)
2040-41
Minimum 70% of the quantity of Battery placed in the market in 2032-33.
(xiii)
2041-42
Minimum 70% of the quantity of Battery placed in the market in 2033-34.
(xiv)
2042-43
Minimum 70% of the quantity of Battery placed in the market in 2034-35.
(viii)
2043-44 till 2056-57
2043-2044 and onwards
Minimum 70% of the quantity of Battery placed in the market in the 8th preceding financial year (i.e. 2035-36) and onwards.
Collection of 100% Waste Battery and 100% of refurbishment or recycling shall be mandatory by the end of the fourteen-year compliance cycle (end of the 14th year) against the Battery placed in the market during the seven-year compliance cycle.
However, there may be a carry forward of up to 60% of the average quantity of Battery placed in the market per year during the fourteen-year cycle to the next compliance cycle.