With gigafactories rising and mining for critical materials like lithium and cobalt taking an environmental toll, the need for a robust battery recycling ecosystem has never been more urgent.
Companies in India are leveraging innovative technologies to recover valuable materials from spent batteries. As the demand for sustainable practices grows, battery recycling is emerging as a crucial and rapidly expanding sector in the country.
Here are five promising battery recycling stocks to watch out for in 2025:
Gravita India
Gravita India, a leading lead producer, specialises in recycling lead, plastic, and, aluminum while offering turnkey solutions for lead battery recycling.
The company efficiently recovers lead from used batteries through eco-friendly methods and provides products like pure lead, specialised alloys, lead sheets, and PET flakes to industries worldwide.
Its manufacturing facilities are spread across India in Jaipur (Rajasthan), Kathua (J&K), Mundra (Gujarat), and Chittoor (AP), with additional operations in Ghana, Mozambique, Togo, Senegal, Tanzania, and Sri Lanka.
In 2023, the company expanded its recycling capacity in Chittoor, Andhra Pradesh, bringing the total capacity of the Gravita Group to 278,000 MTPA, with a target of reaching 425,000 MTPA by FY26.
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The company has processed over 250,000 MT of scrap, producing more than 169,000 MT of recycled products, including 148,500 MT of lead, 10,800 MT of aluminium, 8,500 MT of plastics, and 3,097 MT of tire oil.
On the financial front, for the September 2024 quarter, the company reported an 11% year-on-year (YoY) increase in revenue, to ₹9.3 billion. The net profit surged 26.3%, to ₹720 million.
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Over the years, the company’s revenue and net profit have improved over the last 3 years. Its revenue has grown at a CAGR of 20.6% and net profit at CAGR of 65.7%.
The returns have been strong, with the RoE and RoCE averaging over 27.9% and 34.4%, respectively.
The company is planning to expand its operations by increasing capacity to more than 5,00,000 MT in FY27. It has already made capital investments of ₹1.1 billion in FY23 and ₹980 million in FY24. Investments planned for new segments are: ₹400 million in FY25, ₹700 million in FY26, and ₹1,000 million in FY27.
Amara Raja Energy & Mobility
The company recycles lead-acid batteries.They are one of India’s largest manufacturers of lead-acid batteries and have a closed-loop system for recycling.
Amara Raja Energy and Mobility Ltd. (ARE&M) started commercial operations at its lead-acid battery recycling plant in Cheyyar, Tamil Nadu in November 2024.
The plant is designed to meet 25-30% of the company’s raw material needs. Operated by its subsidiary, Amara Raja Circular Solutions, the facility initially had a recycling capacity of 150,000 metric tons per annum, with 100,000 metric tons in the first phase.
Equipped with advanced technologies like a de-sulphurisation system and oxy-fuel technology, the plant focuses on reducing CO2 emissions, minimising lead content in slag, and promoting environmental sustainability.
In the September 2024 quarter, the company reported a 9.9% YoY rise in revenue to ₹32.5 billion. Meanwhile, the net profit surged 4.1% YoY to ₹2.4 billion.
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From FY22 to FY24, the company achieved a CAGR growth of 11.5% in sales, while its net profit saw a growth by 14.1%.
The returns have been strong, with the RoE and RoCE averaging 14.4% and 19.4%, respectively.
Going forward, the company is increasing its focus on exports to over 50 countries that are currently served. Its enhancing the distribution network in India with over 100,000 points of sale currently.
Nile
Nile primarily known for its secondary manufacturing of pure lead and lead alloys, has also ventured into the recycling of lithium-ion batteries.
Through its subsidiary, Nile Li-Cycle Private Limited, the company inaugurated the first phase of its lithium-ion battery recycling plant in Telangana in March 2024, specialising in the production of mixed metal oxides.
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With plans to scale operations by March 2025 and a strategic focus on sourcing raw materials through partnerships with OEMs and vendors, Nile is emerging as a significant player in the expanding battery recycling industry.
For the September 2024 quarter, the company reported a 0.4% YoY rise in revenue to ₹2.5 billion. Meanwhile, the net profit rose 2.4% YoY to ₹83.7 million.
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Nile’s revenues have consistently grown at a CAGR of 8%, from ₹5,927.0 million in FY20 to ₹8,376.2 million in FY24. The net profit growth follows a similar growth trajectory, of 20% CAGR from FY20 to FY24.
The return ratios have been strong, with the RoE and RoCE averaging 11% and 15.9%, respectively
Nile Ltd, despite having a high client concentration with 91% of its sales coming from Amara Raja Batteries, remains confident about its future growth.
The company aims to invest ₹600 million in its wholly-owned subsidiary, Nile Li-Cycle Private Limited (NLCPL), by FY26, anticipating enhanced revenue growth and improved profit margins.
Eco Recycling
Eco Recycling Limited (Ecoreco) is an e-waste management company that is expanding into battery recycling. Ecoreco is India’s first authorised e-waste recycling facility and is a leader in the e-waste management industry.
With a combined capacity of 7,200 MTPA and a recent expansion to 18,000 MTPA for e-waste, along with 6,000 MTPA for battery recycling, Ecoreco is well-positioned to contribute significantly to the government’s recycling goals.
The company is already serving several global brands by providing e-waste recycling services and EPR credits as mandated by the e-waste management rules.
In 2023, Ecoreco collaborated with the Centre for Materials for Electronics Technology, under the Ministry of Electronics & Information Technology. This partnership aimed to introduce advanced technology for the efficient recovery of valuable elements from lithium-ion batteries.
In the September 2024 quarter, the company reported an 81.3% YoY rise in revenue to ₹128.7 million. Meanwhile, the net profit rose 40.4% YoY to ₹82 million.
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From FY20 to FY24, the company achieved a CAGR growth of 17.6% in sales and 75.3% in net profit.
This growth has led to a strong RoCE and RoE averaging 17.1% and 18.4% over the last 5 years.
The company plans to focus on developing innovative technologies to enhance recycling efficiency while also exploring opportunities in emerging markets with rapidly growing EV industries.
Pondy Oxides & Chemicals
Pondy Oxides & Chemicals Ltd (POCL) is a prominent name in lead-acid battery recycling in India. As a leading secondary lead smelter and non-ferrous recycling company, POCL efficiently transforms used lead-acid batteries and scrap metals into high-quality pure lead and lead alloys.
It has signed a MoU with the Tamil Nadu government to establish recycling and manufacturing facilities.The MoU aims to promote sustainability and circular economy in Tamil Nadu.
The company has also partnered with Ace Green Recycling Inc. to build the world’s largest greenhouse gas (GHG) emission-free battery recycling facility in Chittoor, Andhra Pradesh, India.
The facility is expected to recycle lead-acid batteries and prevent GHG emissions.The partnership is a 10-year, $12 million deal for equipment supply and licensing.
In the September 2024 quarter, the company reported a 45.7% YoY rise in revenue to ₹5.7 billion. Meanwhile, the net profit rose 112.9% YoY to ₹173.9 million.
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From FY20 to FY24, the company achieved a CAGR growth of 8% in sales, while its net profit saw a growth of 14.3%.
This growth has led to a strong RoCE and RoE averaging 15.7% and 23.9% over the last 5 years.
The company plans to invest ₹3-5 billion over five years to increase its lead production capacity from 132,000 to 204,000 metric tonnes per year. The expansion will be carried out in two phases.
Conclusion
India’s growing lithium-ion battery demand, projected to reach 127 GWh by FY30, highlights the nation’s heavy reliance on imports.
A NITI Aayog report estimates total battery demand at 600 GWh between 2022 and 2030, with 128 GWh expected from recycling, driven largely by EV batteries (46%).
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This surge presents significant opportunities for battery recycling companies. As EV adoption accelerates, efficient recycling mechanisms are crucial to managing the rise in spent batteries and supporting sustainability goals.
Investors should focus on a company’s fundamentals, governance, and stock valuations when considering investments in this expanding sector.
Disclaimer:This article is for information purposes only. It is not a stock recommendation and should not be treated as such.
This article is syndicated from Equitymaster.com
