Importance of a Circular Economy in Driving Sustainability

The article is authored by Anurag Mehrotra, Managing Director, JSW MG Motor India

In recent times, there has been an enhanced emphasis on creating a circular economy for a sustainable future. While it is in the nascent stages, India has managed to attract significant investments totalling to approximately $1.8 billion over the past five years for the creation of a circular economy in various subsectors. It is important to note that nearly 80% of the total investment value have been directed towards mitigation-focussed innovations, particularly in clean energy and sustainable mobility.

On this World Environment Week, it is crucial to understand that without a circular approach, we are risking replacing one form of ecological degradation with another. From an auto industry standpoint, investing in creation of second-life use cases for batteries, in the form of energy storage systems for stationary applications, will certainly drive more sustainability. Customer interest in Electric Vehicles (EVs) is steadily rising in India, backed by new launches by mass carmakers and the expansion of the charging infrastructure. While a focussed approach is driving EV sales in India, the next imperative task at hand for the sector is to collectively create an ecosystem for battery life management.

EV batteries consist rare earth elements, such as lithium, and cobalt, which are finite. Repurposing helps mitigate these risks by enabling the recovery of valuable raw materials, minimising reliance on virgin mining, and providing cost-efficient stability. The repurposing process of EV batteries have evolved significantly since inception. Pre 2020, most used batteries were discarded or exported for recycling. The next phase witnessed the introduction of Battery Waste Management Rules and saw the emergence of many start-ups in this domain. Currently, second-life batteries are now a formal part of India’s clean energy and mobility strategy.


Estimates suggest that by 2030, India is expected to generate 128 GWh of recyclable battery waste. This highlights the importance of battery recycling in crafting a sustainable tomorrow. Efficient recycling methods can recover 70-80% of the battery’s capacity even after their use in vehicles, allowing them to be repurposed for different storage solutions such as grid stabilisation, industrial backup, and residential energy systems. Recycled materials can lower costs by 30-50% compared to newly mined resources, making this strategic shift a significant competitive advantage for India in the global battery supply chain.

Now, imagine the immense opportunity for OEMs to create an alternate revenue stream by repurposing batteries. Furthermore, it won’t be wrong to predict a new wave of start-ups in the recycling business, collaborating with OEMs, to present innovative ideas with battery recycling. For automakers, this transition is not just beneficial but essential. Moving beyond manufacturing and embracing sustainable battery lifecycle management will be key to long-term success. Additionally, the revenue-generation potential in this space is immense—leasing models, refurbishment programs, and Battery-as-a-Service (BaaS) are just a few innovative ways to open new income models. In addition, government incentives for second-life applications will further encourage the adoption of these practices across industries.

That said, to realize the full potential of a circular economy in India, a collaborative approach needs to be implemented in creating a robust waste management infrastructure that seamlessly enables collection, sorting, and processing. Secondly, businesses should adopt circular supply chains and product life extension strategies. Next, consumer awareness on effective waste management needs to be ramped up. In addition, recycling technologies constantly need to evolve for scaling up operations and handling complex waste materials. Most importantly, a conducive policy and regulatory framework is needed to incentivise circular economy practices and discourage linear approaches.

I am confident that India’s mission to becoming a five trillion-dollar economy will be largely driven by sustainability in every aspect. Redefining the automotive industry’s role in energy management can position India as a global leader in energy storage solutions. We are already in the future of mobility—the only way forward is to keep innovating while ensuring circular practices remain at the core.

Disclaimer: Views and opinions expressed in this article are solely those of the original author and do not represent any of Times Group or it's employees
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