NITI Aayog lays out a roadmap for advancing the circular economy framework for E-waste and lithium-ion battery scrap

NITI Aayog has proposed additional incentives to manufacturers under the Production Linked Incentive (PLI) scheme for Advanced Chemistry Cells to promote the uptake of recycled materials saying advancing the circular economy framework for E-waste and Lithium-ion Battery scrap is a national priority.

“For E-waste management, the government must expand the extended producer responsibility (EPR) coverage to other high-value metals, over and above gold, copper, iron, and aluminum to enable investment and innovation in the recovery of other valuable and critical minerals,” the Aayog said in its report on Advancing Circular Economy of E-waste and Lithium Ion Batteries in India, prepared jointly with The Energy and Resources Institute (TERI).

For Lithium-ion Battery scrap management, recommended priority actions include integrating the EPR-GSTN portal for seamless invoice verification, tightening EPR enforcement to track and ensure accountability across the value chain, and notifying chemistry-wise metal composition in Lithium-ion Batteries,” it added.


According to the Aayog, tightening governance, deepening markets for secondary materials, and fostering domestic technological capabilities can convert India’s E-waste and Lithium-ion Battery scraps into strategic resource reservoirs, reduce exposure to volatile global supply chains, and consolidate its leadership in sustainable and clean-tech value chains.

The report, released by the Material Recycling Association of India (MRAI) at the India Material Recycling Conference (IMRC) 2026 further suggests updation of the BIS certification (IS 16046) to include mandatory chemical composition testing of the recycled Lithium-ion Batteries, and detailed guidelines to be issued for the collection, storage, transportation, refurbishment, and recycling of waste batteries.

“Purity standards should be established, and additional incentives may be provided to manufacturers under the Production Linked Incentive scheme for Advanced Chemistry Cells to promote the uptake of recycled materials,” it added.

As per the report, India's annual economic value of E-waste is estimated to be Rs 51,000 crore, of which 60% is extractable while the current recovery systems capture only 18% of this potential. “As a result, a major opportunity is lost due to poor processing and inefficiencies in the informal sector,” it said.