With gigafactories rising and mining for important supplies like lithium and cobalt taking an environmental toll, the necessity for a sturdy battery recycling ecosystem has by no means been extra pressing.
Corporations in India are leveraging progressive applied sciences to recuperate helpful supplies from spent batteries. Because the demand for sustainable practices grows, battery recycling is rising as a vital and quickly increasing sector within the nation.
Listed here are 5 promising battery recycling shares to be careful for in 2025:
Gravita India
Gravita India, a number one lead producer, specialises in recycling lead, plastic, and, aluminum whereas providing turnkey options for lead battery recycling.
The corporate effectively recovers lead from used batteries by means of eco-friendly strategies and gives merchandise like pure lead, specialised alloys, lead sheets, and PET flakes to industries worldwide.
Its manufacturing amenities are unfold throughout India in Jaipur (Rajasthan), Kathua (J&Ok), Mundra (Gujarat), and Chittoor (AP), with further operations in Ghana, Mozambique, Togo, Senegal, Tanzania, and Sri Lanka.
In 2023, the corporate expanded its recycling capability in Chittoor, Andhra Pradesh, bringing the overall capability of the Gravita Group to 278,000 MTPA, with a goal of reaching 425,000 MTPA by FY26.
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The corporate has processed over 250,000 MT of scrap, producing greater than 169,000 MT of recycled merchandise, together with 148,500 MT of lead, 10,800 MT of aluminium, 8,500 MT of plastics, and three,097 MT of tire oil.
On the monetary entrance, for the September 2024 quarter, the corporate reported an 11% year-on-year (YoY) improve in income, to ₹9.3 billion. The web revenue surged 26.3%, to ₹720 million.
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Over time, the corporate’s income and internet revenue have improved during the last 3 years. Its income has grown at a CAGR of 20.6% and internet revenue at CAGR of 65.7%.
The returns have been sturdy, with the RoE and RoCE averaging over 27.9% and 34.4%, respectively.
The corporate is planning to increase its operations by growing capability to greater 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 deliberate for brand new segments are: ₹400 million in FY25, ₹700 million in FY26, and ₹1,000 million in FY27.
Amara Raja Power & Mobility
The corporate recycles lead-acid batteries.They’re one in all India’s largest producers of lead-acid batteries and have a closed-loop system for recycling.
Amara Raja Power and Mobility Ltd. (ARE&M) began industrial operations at its lead-acid battery recycling plant in Cheyyar, Tamil Nadu in November 2024.
The plant is designed to fulfill 25-30% of the corporate’s uncooked materials wants. Operated by its subsidiary, Amara Raja Round Options, the power initially had a recycling capability of 150,000 metric tons each year, with 100,000 metric tons within the first part.
Outfitted with superior applied sciences like a de-sulphurisation system and oxy-fuel know-how, the plant focuses on lowering CO2 emissions, minimising lead content material in slag, and selling environmental sustainability.
Within the September 2024 quarter, the corporate reported a 9.9% YoY rise in income to ₹32.5 billion. In the meantime, the web revenue surged 4.1% YoY to ₹2.4 billion.
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From FY22 to FY24, the corporate achieved a CAGR development of 11.5% in gross sales, whereas its internet revenue noticed a development by 14.1%.
The returns have been sturdy, with the RoE and RoCE averaging 14.4% and 19.4%, respectively.
Going ahead, the corporate is growing its deal with exports to over 50 nations which can be presently served. Its enhancing the distribution community in India with over 100,000 factors of sale presently.
Nile
Nile primarily identified for its secondary manufacturing of pure lead and lead alloys, has additionally ventured into the recycling of lithium-ion batteries.
Via its subsidiary, Nile Li-Cycle Non-public Restricted, the corporate inaugurated the primary part of its lithium-ion battery recycling plant in Telangana in March 2024, specialising within the manufacturing of combined metallic oxides.
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With plans to scale operations by March 2025 and a strategic deal with sourcing uncooked supplies by means of partnerships with OEMs and distributors, Nile is rising as a major participant within the increasing battery recycling business.
For the September 2024 quarter, the corporate reported a 0.4% YoY rise in income to ₹2.5 billion. In the meantime, the web revenue rose 2.4% YoY to ₹83.7 million.
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Nile’s revenues have persistently grown at a CAGR of 8%, from ₹5,927.0 million in FY20 to ₹8,376.2 million in FY24. The web revenue development follows an identical development trajectory, of 20% CAGR from FY20 to FY24.
The return ratios have been sturdy, with the RoE and RoCE averaging 11% and 15.9%, respectively
Nile Ltd, regardless of having a excessive consumer focus with 91% of its gross sales coming from Amara Raja Batteries, stays assured about its future development.
The corporate goals to take a position ₹600 million in its wholly-owned subsidiary, Nile Li-Cycle Non-public Restricted (NLCPL), by FY26, anticipating enhanced income development and improved revenue margins.
Eco Recycling
Eco Recycling Restricted (Ecoreco) is an e-waste administration firm that’s increasing into battery recycling. Ecoreco is India’s first authorised e-waste recycling facility and is a pacesetter within the e-waste administration business.
With a mixed capability of seven,200 MTPA and a latest enlargement to 18,000 MTPA for e-waste, together with 6,000 MTPA for battery recycling, Ecoreco is well-positioned to contribute considerably to the federal government’s recycling targets.
The corporate is already serving a number of world manufacturers by offering e-waste recycling companies and EPR credit as mandated by the e-waste administration guidelines.
In 2023, Ecoreco collaborated with the Centre for Supplies for Electronics Know-how, beneath the Ministry of Electronics & Data Know-how. This partnership aimed to introduce superior know-how for the environment friendly restoration of helpful parts from lithium-ion batteries.
Within the September 2024 quarter, the corporate reported an 81.3% YoY rise in income to ₹128.7 million. In the meantime, the web revenue rose 40.4% YoY to ₹82 million.
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From FY20 to FY24, the corporate achieved a CAGR development of 17.6% in gross sales and 75.3% in internet revenue.
This development has led to a powerful RoCE and RoE averaging 17.1% and 18.4% during the last 5 years.
The corporate plans to deal with growing progressive applied sciences to reinforce recycling effectivity whereas additionally exploring alternatives in rising markets with quickly rising EV industries.
Pondy Oxides & Chemical substances
Pondy Oxides & Chemical substances Ltd (POCL) is a distinguished identify in lead-acid battery recycling in India. As a number one secondary lead smelter and non-ferrous recycling firm, POCL effectively 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 authorities to ascertain recycling and manufacturing amenities.The MoU goals to advertise sustainability and round economic system in Tamil Nadu.
The corporate has additionally partnered with Ace Inexperienced Recycling Inc. to construct the world’s largest greenhouse gasoline (GHG) emission-free battery recycling facility in Chittoor, Andhra Pradesh, India.
The power is anticipated to recycle lead-acid batteries and stop GHG emissions.The partnership is a 10-year, $12 million deal for gear provide and licensing.
Within the September 2024 quarter, the corporate reported a forty five.7% YoY rise in income to ₹5.7 billion. In the meantime, the web revenue rose 112.9% YoY to ₹173.9 million.
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From FY20 to FY24, the corporate achieved a CAGR development of 8% in gross sales, whereas its internet revenue noticed a development of 14.3%.
This development has led to a powerful RoCE and RoE averaging 15.7% and 23.9% during the last 5 years.
The corporate plans to take a position ₹3-5 billion over 5 years to extend its lead manufacturing capability from 132,000 to 204,000 metric tonnes per yr. The enlargement might be carried out in two phases.
Conclusion
India’s rising lithium-ion battery demand, projected to succeed in 127 GWh by FY30, highlights the nation’s heavy reliance on imports.
A NITI Aayog report estimates whole battery demand at 600 GWh between 2022 and 2030, with 128 GWh anticipated from recycling, pushed largely by EV batteries (46%).
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This surge presents important alternatives for battery recycling corporations. As EV adoption accelerates, environment friendly recycling mechanisms are essential to managing the rise in spent batteries and supporting sustainability targets.
Traders ought to deal with an organization’s fundamentals, governance, and inventory valuations when contemplating investments on this increasing sector.
Disclaimer:This text is for info functions solely. It’s not a inventory advice and shouldn’t be handled as such.
This text is syndicated from Equitymaster.com
