Battery prices set to drop by 10% post budget 2025: Attero Recycling CEO

The Union Budget 2025 has introduced a significant policy shift that could reshape India's EV battery ecosystem. With the Basic Customs Duty (BCD) waived on the import of battery scrap, industry experts believe this move will drive down costs and strengthen domestic recycling and refining infrastructure.

Lower Import Duty: A Game Changer for Battery Manufacturing

Last year, the government waived import duty on refined critical minerals essential for battery production. While this was a positive step, Attero Recycling CEO Nitin Gupta believes that waiving BCD on battery scrap will be even more beneficial. According to him, scrap imports are cheaper than refined lithium, allowing India to enhance its refining and recycling capabilities while reducing dependence on expensive imports.

"It lowers the overall import requirement. By refining battery materials domestically, we are adding value within the country instead of relying entirely on foreign suppliers," Gupta explained.

Boosting India’s Refining Ecosystem

India currently lacks substantial lithium reserves and refining capabilities. At present, China dominates 80% of the global EV battery refining industry. Gupta asserts that unless India builds its own refining infrastructure, achieving a self-sufficient EV battery supply chain will remain a challenge.

"This policy change improves supply security, cuts input costs, and encourages investments in refining infrastructure within the country," said Gupta. "Attero is already a leader in this space, and we expect more players to join in."

Role of Recycling Companies in the EV Revolution

Although companies like Attero and BatX are making strides in EV battery and e-waste recycling, India’s mineral refining sector remains underdeveloped. However, Attero has already taken steps toward self-sufficiency with its in-house refining facility.

"Our facility allows us to refine battery materials, producing pure output that can be used directly in manufacturing. With this duty waiver, we can now import more scrap, increasing our refining capacity at a lower cost," Gupta added.

Will EV Battery Prices Drop?

With the Clean Tech mission and the Production Linked Incentive (PLI) scheme in place, Gupta expects the cost of EV batteries to decline. He estimates that battery prices will decrease by 10%, directly impacting overall EV costs.

"Batteries make up nearly 50% of an EV’s cost. If battery prices drop by 10%, we should see at least a 5% reduction in EV prices," Gupta explained.

However, with reduced government incentives for electric two-wheelers under the PM e-Drive scheme, it remains to be seen if this price reduction will be enough to boost demand.

Attero’s Expansion Plans

Attero Recycling is gearing up for massive growth. The company plans to scale up its recycling capacity sixfold over the next four years. Its current capacity of 1.44 lakh tonnes per annum will increase to 3 lakh tonnes per annum, with expansions in battery recycling as well as copper and aluminum processing.

"This policy change accelerates our expansion. India needs more champions in this space if we are to compete with China and become a global leader in battery recycling and refining," Gupta stated.

The Road Ahead

The 2025 Budget has set the stage for a more sustainable and cost-effective EV ecosystem in India. With increased investment in refining and recycling, the country is poised to take a significant leap toward reducing import dependence and strengthening its clean energy sector. Whether other industry players will step up to match Attero’s aggressive expansion remains to be seen, but one thing is clear—India’s EV industry is on the verge of a major transformation.