Energy storage based on lithium-ion batteries can help India achieve its greenhouse gas mitigation targets, but the country has meagre lithium deposits and is heavily dependent on imports for its energy transition. That's why it is important to have a reuse/recycle ecosystem for lithium-ion batteries within the country to minimize import dependence. A circular economy for lithium batteries is all the more important because India, which is home to some of the most polluted cities on Earth, will be the third largest market for energy storage by 2040, behind China and the United States. The circularity efforts will not only help in price recovery but also save India from geopolitical risks and environmental hazards arising from the mishandling of battery waste, such as water and soil contamination, and air pollution. In order to channelize depleted batteries towards refurbishment or recycling, the environment ministry on August 24 notified the Battery Waste Management Rules, 2022 for the management of various types of waste batteries, including lithium-ion batteries from electric vehicles, in an environmentally sound manner. "Notification of these rules is a transformative step towards implementation of the announcement made by Prime Minister Narendra Modi in his address to the nation on Independence Day, 2021 to promote Circular Economy in full earnest," said the ministry while notifying the new rules.

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