Delhi EV Policy 2.0 to Introduce Mandatory Battery Recycling Framework

The Delhi Government is set to revolutionize the national capital's electric vehicle ecosystem with the upcoming Delhi EV Policy 2.0. A central pillar of this new policy is a dedicated EV battery recycling framework, designed to tackle the looming challenge of battery waste while recovering valuable rare earth materials.

With the current Delhi EV policy set to expire at the end of March, the new version is expected to be unveiled during the Delhi Assembly budget session in late March 2026.

Why a Battery Recycling Framework Matters

As EV adoption in Delhi surges, the volume of end of life batteries is projected to grow significantly. A typical electric car battery lasts approximately 12 to 14 years. Without a structured disposal system, these batteries pose environmental risks.

The proposed framework aims to:

• Ensure Environmental Safety: Prevent toxic materials from entering landfills.

• Material Recovery: Extract and reuse lithium, cobalt, and nickel to strengthen the domestic supply chain.

• Circular Economy: Foster a sustainable lifecycle for EV components.

Key Features of the Delhi EV Policy 2.0

1. DPCC as the Nodal Agency

The Delhi Pollution Control Committee (DPCC) is slated to oversee the implementation of the recycling system. The DPCC will issue Standard Operating Procedures (SOPs) for the collection, storage, and safe transportation of waste batteries to authorized recyclers.

2. Strict Compliance and EPR Norms

Under the Battery Waste Management Rules, 2022, the environment department will mandate Extended Producer Responsibility (EPR). This means vehicle manufacturers (OEMs) will be legally responsible for the collection and recycling of batteries they put into the market.

3. Public Private Partnership (PPP) Model

To make recycling accessible, the draft policy proposes setting up a network of battery collection centers across Delhi. These will be developed under a PPP model, collaborating with authorized recyclers and private entities.

4. New Incentives and Hybrid Support

Beyond recycling, Policy 2.0 is expected to offer:

• Tax Exemptions: Potential road tax and registration fee waivers for EVs and strong hybrid cars priced under ₹30 lakh.

• Special Mobility Zones: Creation of low emission zones to encourage cleaner transport.

• Infrastructure Expansion: Continued focus on battery swapping stations and public charging networks.

Impact on the Indian EV Industry

Delhi’s proactive stance is likely to set a benchmark for other Indian states. By integrating recycling into the core EV policy, the government is signaling to investors and startups that the "circular economy" is a priority. This move is expected to create new business opportunities in the battery management and servicing sectors.