EV Battery Prices Expected to Drop by 10% Post Budget 2025: Attero Recycling CEO
Introduction
EV Battery: The Union Budget 2025 has introduced several key policies aimed at boosting India’s electric vehicle (EV) ecosystem, particularly in the realm of battery manufacturing. One of the most significant moves is the waiver of Basic Customs Duty (BCD) on the import of scrapped critical minerals, which could significantly impact EV battery prices. Attero Recycling CEO Nitin Gupta has stated that this policy change is expected to lower battery prices by 10%, making EVs more affordable for consumers.
With India striving to reduce dependence on foreign refined lithium and cobalt, these measures could accelerate domestic battery production and refining capabilities. But how will this impact the industry, and what does it mean for the future of India’s EV sector? Let’s dive deeper.
The Shift from Refined Critical Minerals to Scrapped Imports
Last year’s budget introduced a waiver on the import duty of refined critical minerals essential for battery manufacturing. While this was a step in the right direction, Gupta believes that waiving BCD on scrapped critical minerals is an even better move.
Key Benefits of This Policy:
- Lower Import Costs: The import value of scrap is lower than that of refined lithium, reducing expenses for manufacturers.
- Encourages Domestic Refining: By processing scrap domestically, India can add value within its borders, creating a stronger supply chain.
- Reduces Dependence on Imports: While imports will still be necessary, their overall value will decrease, making India less reliant on foreign suppliers.
Gupta explains, “If you’re creating refining infrastructure and capacity in the country, then the value addition from scrap to finished products happens domestically. While we still depend on imports, the overall cost goes down.”
Strengthening India’s Refining Ecosystem
India does not have significant lithium reserves, making it essential to develop a robust battery material refining system. Currently, 80% of EV battery refining takes place in China. The new policy, combined with existing government incentives, could encourage investments in lithium and cobalt refineries.
Gupta is optimistic about this shift, stating, “It gives supply security, reduces input costs, and encourages investments in refining. Attero is a leader in this space, and I believe other players will also join in building refining infrastructure.”
The Role of Recycling in Lithium and Cobalt Refining
While India has a few key players like Attero and BatX in the battery recycling sector, the mineral refining ecosystem remains underdeveloped. Attero, however, has already integrated refining into its operations.
Gupta explains, “With in-house refining, we are able to take scrap directly and produce pure output. Importing scrap rather than refined lithium gives us a cost advantage and allows us to scale up quickly.”
As battery cell manufacturing in India is still in its early stages, there is little manufacturing waste to recycle. Importing scrap, therefore, is a crucial step in increasing domestic refining capacity.
Impact on EV Battery Prices and Vehicle Costs
One of the biggest questions surrounding these policy changes is whether they will bring down the cost of EVs. The PM e-Drive scheme, in its second year, has reduced incentives for electric two-wheelers from ₹10,000 to ₹5,000, leading to concerns about demand slowdown.
However, according to Gupta, the new duty waiver will help offset these concerns by reducing battery prices by 10%. Since batteries make up roughly 50% of an EV’s total cost, this should translate to a 5% reduction in overall vehicle prices.
“Battery prices will come down by 10%, which should have a 5% impact on EV prices. This will make electric vehicles more accessible to consumers,” Gupta says.
Attero Recycling’s Expansion Plans
With these favorable policies, Attero Recycling is gearing up for massive expansion. The company plans to scale up its capacity six times over the next four years, increasing its annual processing capacity from 1.44 lakh tonnes to 3 lakh tonnes.
In addition to boosting its battery recycling capabilities, Attero is also expanding its copper and aluminum recycling facilities. Gupta believes that India needs more players in this space to compete with China and establish itself as a global leader in EV battery manufacturing.
“India needs more champions in battery recycling and refining if we are to outpace China. More investment in this sector will benefit the entire EV ecosystem,” he adds.
Financial Ratios and Key Metrics
| Metric | Current Value | Projected Impact |
|---|---|---|
| Battery Price Reduction | 0% | 10% decrease |
| EV Price Reduction | 0% | 5% decrease |
| Attero’s Recycling Capacity | 1.44 lakh tonnes/year | 3 lakh tonnes/year |
| Import Dependency on China for Refining | 80% | Expected to decline |
| Investment in Domestic Refining | Low | Expected to rise |
Conclusion
The 2025 Budget’s focus on reducing import duties for scrapped critical minerals is a strategic move that could reshape India’s EV industry. By lowering battery costs, encouraging domestic refining, and reducing dependency on China, this policy is expected to have far-reaching impacts on the country’s green mobility goals.
With companies like Attero Recycling leading the charge, India is set to witness rapid advancements in battery recycling and refining. The coming years will be crucial in determining whether these policies can successfully position India as a global hub for EV battery production.
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