Top stocks in battery recycling space in India: Amara Raja, Exide, Tata Chemicals, Gravita and more

With the rapid adoption of EV and battery-powered technologies, battery recycling has become crucial in India. Recycling and reusing of batteries is important as the critical elements for battery manufacturing are limited and costlier. Therefore several prominent players such as Amara Raja Energy & Mobility, Exide Industries, and others are actively investing in this space.

These companies are focusing on lead-acid battery recycling, lithium-ion battery recycling and other related technologies, contributing to a more sustainable and circular economy.

Here are the top 6 battery recycling stocks

( Note - Stock Price and Market-cap as of September 5, 2024)

Exide Industries Ltd

The company and its subsidiary Chloride Metals Limited focuses on battery recycling and launched its 4th lead battery recycling plant in India in August 2023 with an initial 96,000 million tonnes per annum (MTPA) capacity, expandable to 1,20,000 MTPA. Exide has invested ₹120 crore in the current financial year in capacity expansion and modernisation of facilities. In FY22, it established a new battery recycling facility in Haldia with 1,08,000 MTPA capacity. Over FY17-20, Exide invested ₹2,300 crore in capex for new recycling and manufacturing expansions. The stock trades at ₹490, delivering an 82% return over the last year.

Amara Raja Energy & Mobility Ltd

Its subsidiary Amara Raja Circular Solutions is setting up a battery recycling plant in Cheyyar, Tamil Nadu with a 1.5 lakh MTPA capacity, expected to be operational this fiscal. This plant will meet 25% - 30% of Amara Raja’s raw material requirements. The stock trades at ₹1,084 and has delivered a return of 122% in the last one year.

Tata Chemicals Ltd

In FY19-20, the company began commercially recovering cathode active materials from used lithium-ion cells and batteries with a recycling process achieving 99% purity of valuable ingredients. The company operates a recycling facility near Mumbai and plans to scale the operations to 500 tons of used Li-ion batteries. The stock trades at ₹1,082 and has delivered a negative -2% return in the past year.

Gravita India Ltd

The company also provides technical consultation for lead acid battery recycling and smelting, advanced PLC-based control and monitoring systems, and flexible annual maintenance contracts. With over 70 successful recycling projects globally, including Qatar, UAE, Saudi Arabia, Poland and Chile.

Gravita signed an MOU to set up its first battery recycling plant in the Middle East with 6,000 MTPA through a joint venture. The project aligns with the company’s “Vision 2028” to diversify resources and grow revenue.

Gravita’s stock trades at ₹2,308, delivering a 193% return in the past year.

Pondy Oxides & Chemicals Ltd (POCL)

POCL signed an MoU with the Tamil Nadu Government, to establish advanced recycling and manufacturing facilities focused on non-ferrous metals, lithium-ion battery recycling, e-waste and plastics along with dedicated R&D centres.

The company plans to invest ₹300-500 crore over five years, expanding its lead capacity from 132,000 to 204,000 MTPA.

POCL partnered with Ace Green Recycling Inc., (US-based), to set up the world’s largest greenhouse gas emission-free battery recycling facility Andhra.

The stock currently trades at ₹2,281, yielding 364% over the last year.

Nile Ltd

Its subsidiary Nile Li-Cycle Private Limited launched Phase 1 of its lithium-ion battery recycling plant in Telangana in March 2024, focusing on producing mixed metal oxide.

The company has started the process of reaching out to Original Equipment Manufacturers for raw materials, expecting sales to accelerate. Phase 2 operations are planned by March 2025. Niles’s stock trades at ₹2,341, offering a 221% increase in the past year.

Conclusion

India’s battery recycling market is projected to grow by $22.05 billion by 2028 driven by rising EV adoption, limited raw material and environmental concerns (source - technavio). Amara Raja, Exide and other key players are leading the sustainable solutions, positioning themselves for significant growth in the fast-evolving sector.