TL;DR
A UN official suggests that India can extend the utility of LFP EV batteries through second-life applications and implement policies like EPR and Deposit Refund Schemes to tackle future battery waste challenges.
A United Nations official has emphasized the significant potential for extending the life of Lithium Iron Phosphate (LFP) batteries beyond their initial use in electric vehicles (EVs), advocating for their deployment in second-life applications. Despite safety concerns regarding thermal runaway, proper diagnostic checks, thorough screening, and continuous monitoring can prolong the operational life of these batteries by seven to ten years, while simultaneously mitigating environmental risks. LFP batteries are already seeing rapid adoption in India’s EV and solar storage sectors due to their inherent safety and affordability.
The official highlighted that battery storage systems utilizing second-life batteries can reduce energy storage costs by 20 to 30 percent compared to new batteries, thereby improving access to reliable and affordable power for underserved communities. However, the economic viability of recycling LFP batteries for profit remains a challenge due to their composition. To avert a potential battery waste crisis, especially with an estimated 500,000 tonnes of LFP batteries projected to enter the recycling market annually between 2022 and 2030, strict enforcement of Extended Producer Responsibility (EPR) regulations is crucial.
Policy tools such as requiring new batteries to contain at least 20 percent recycled materials by 2030 could create a stable domestic market for recovered minerals. Additionally, implementing a Deposit Refund Scheme would incentivize consumers to return spent batteries to authorized centers, further supporting sustainable battery management in India.
