Why circular economics is non-negotiable for EV growth

EVs are the best thing to reduce vehicular pollution

For ages, the roads in any city were covered in fumes of smoke emitted by internal combustion engines. With time engines and fuel improved, yet the dream of zero emissions was only possible when combustion is eliminated. No wonder then, vehicular pollution is the second largest contributor to CO2 emissions just behind power generation. Both contribute to 23% of global CO2 emissions. While transport as a sector contributes to 5% of Gross Value Added (GVA), it contributes to 12% of CO2 emissions, much larger than its fair share. The sector accounts for 5% of GVA in India, but its share of CO2 emissions from energy use is 12 %. Left unchecked this can increase to 20% - increasing the load on the environment.

Understanding the Circular Economy in EV Batteries

Most industries still run on a linear model: take resources, make a product, and dispose of it. The circular economy aims to disrupt this by designing out waste, keeping materials in use longer, and regenerating value through reuse and recycling. EV batteries sit at the heart of this transition. They're material-intensive, complex, and packed with valuable resources like lithium, cobalt, and nickel. If not managed properly, they risk becoming a future environmental hazard—but if embraced through circular economy principles, they can help power a low-carbon future sustainably.

It is a great relief that Electric Vehicles are absolutely zero-emission and gaining market share.

The EVs are also way more energy efficient with only 15% to 20% energy loss, in contrast to a 64% to 75% loss in a traditional fuel engine. The focus on EVs as a solution to carbon emission control has been driving policy world-wide. At COP26, India’s 2030 decarbonization target was announced. India has set two ambitious targets for 2030: achieving 30% EV sales whilst deriving 50% of its primary energy requirement through 500 GW of renewable energy sources. The EV Mitra Scheme 2025 promotes the establishment of a robust EV charging network with subsidies to individuals and businesses.

So, you were quite right in claiming that EVs and their ecosystem are helping the ecology become more sustainable. However, take a wider view – is the power generation that charges your EV emission-free? Is battery disposal good for the planet?

Reducing vehicular pollution is a subset of Sustainability

To drive full-scale sustainability, we need to have a full charging infrastructure and e-waste management. It’s obvious that EVs are increasing the need for electric power generation. Pan-India electricity consumption by EV charging stations hit a new high of 590 MU in three quarters of FY25 with Delhi showing an 83% increase Y-o-Y. Where is all this energy coming from? The Power Grid. And how does the Grid get its energy? Fossil fuels account for 78% of power generation in 2024, thus making the power sector India’s largest emissions contributor.

Additionally, there is e-waste generated by end-of-life battery disposal, which is non-biodegradable. India generates approximately 70,000 metric tons of lithium-ion battery waste annually, and as EVs increase so will battery waste. In fact, a Journal of Urban Management report declared that of the 62 MT of waste generated annually, 7.9 MT was hazardous waste, 5.6 MT plastic waste, 1.5 MT e-waste, with Li-Ion batteries becoming an increasing contributor globally.

The Role of Charging Point Operators in the Battery Lifecycle

CPOs sit at a critical junction in the EV ecosystem—not just enabling energy delivery but also collecting data on battery health, performance, and usage patterns. This positions them uniquely to participate in the reuse, repurposing, and recycling of batteries. Rather than being just energy providers, they can become stewards of battery circularity.

Key Circular Economy Strategies for CPOs

• Battery Life Extension: Smart charging protocols and battery management systems can extend battery health and delay replacement. With data analytics, operators can optimize battery usage and reduce operational costs.

• Second-Life Applications: EV batteries that can no longer power vehicles can still serve in less demanding roles—like stationary storage. These second-life batteries can be integrated into EV charging hubs for grid support, peak shaving, and renewable integration.  

• Battery Recycling: By partnering with certified recyclers, CPOs can ensure proper material recovery from end-of-life batteries. Critical minerals like lithium, cobalt, and nickel can be extracted and reintroduced into manufacturing, reducing reliance on virgin mining and supporting a closed-loop system.
• Battery-as-a-Service (BaaS): A BaaS model allows customers to lease or subscribe to batteries rather than own them outright. This lowers upfront costs for users while creating a return path for batteries to be reused, refurbished, or recycled by the operator.

The Energy Value Chain Can Be Designed to Reduce Emissions

India has already set the larger energy value chain sustainability drive in motion. In 2023, The Confederation of Indian Industries (CII) introduced the National Circular Economy Framework (NCEF) as a collaborative effort between the government, industries, and communities to drive: Resource Conservation, Waste Reduction, and Climate Resilience. A key component of the new policy is to encourage charging station operators to utilize renewable energy.

CPOs must rejoice, since this removal of dependence from electric grid reduces risk of outage, optimizes energy costs, and is the right thing for the environment. The cost of grid power is high, industrial tariffs range from ₹5-8 per kWh, while residential tariffs range from ₹4-7 per kWh. Solar energy is typically half of this in per kWh rates. Rooftop solar power stands out as a cost-effective alternative, with lower operational and maintenance costs compared to grid electricity. States with favourable solar policies, such as Gujarat and Maharashtra, further enhance the economic appeal of rooftop solar through subsidies, tax incentives, and net metering. The Indian government also provided Viability Gap Funding (VGF) of 40% funding support for development of Battery Energy Storage Systems (BESS) up to 4,000 MWh in capacity by 2031. This move is expected to bring down the cost of battery storage systems and drive better sustainability overall.

Equipment E-waste also can be reduced by recycling

India introduced the Battery Waste Management Rules in 2022, requiring battery producers to collect, recycle, and refurbish waste batteries. The case of Nissan Leaf batteries is a good example as the lithium-ion battery retains 60 to 80% of its electricity storage capacity at the end of its life. Reusing these EV batteries, as stationary batteries can reduce the CO2 emissions and add additional value to EV batteries.

A Battery Boosted Solution for CPOs is a Leap Forward for Sustainability

The collective solution is a Sustainably designed Battery Boosted EV Charging solution, with solar panels and recycled batteries. If your Charge Point is kitted in this manner – you can truthfully claim to be really sustainable. The benefits of such a solution go way beyond sustainability and profitability, it builds your reputation and revenue too.

Monetary and Business Benefits for CPOs

• Reduced Operational Costs: Second-life batteries and solar installations can lower energy procurement and infrastructure expansion expenses

• New Revenue Streams: Operators can monetize second-life batteries, sell grid services, and participate in emerging material recovery markets.

• Increased Asset Value: Batteries retain economic value at end-of-life. With reuse or recycling, this value can be recaptured by the CPO instead of being lost.

• Regulatory and Brand Advantages: Early adoption of circular strategies not only prepares CPOs for tightening environmental regulations but also boosts consumer trust and corporate social responsibility.

• Supply Chain Resilience: By reducing dependence on raw materials through recycling and reuse, CPOs are less exposed to market volatility and supply chain disruptions.

• Newer revenue-generating opportunities await property owners with such charging stations through a usage fee, subscription, or advertising partner given high traffic. Then there is the ability to sell energy back such as Vehicle to Grid (V2G) for India’s energy grid. India’s renewable energy capacity is set to grow to 500 GW by 2030. Concurrently, an estimated 40% of new vehicle sales in India are expected to be EVs driving a potential for them to trade energy via your station

The Path Forward

The fact that your Charge point is powered by a Battery Boosted Solar Alternative Charging system with recycled batteries makes you really responsible and sustainable. By embracing circular economy principles—from reuse and recycling to renewable integration and smart battery design—CPOs can secure both environmental and business advantages.  

Exicom’s Harmony Boost Battery Boosted EV charging solution with Solar Powered energy source is the perfect sustainable solution to get you started. Talk to our engineers to move towards a Sustainable Future for your Charge Point.

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