From Waste to Wealth: 2 Stocks to Watch in the Battery Recycling Drive

The Union Cabinet has approved a Rs 15 billion (bn) incentive scheme to promote recycling of e-waste and battery waste for extraction of critical minerals.

This scheme is part of the National Critical Mineral Mission (NCMM) and will operate for six years from 2025-26 to 2030-31. It aims to boost India's supply chain resilience by developing recycling capacity from secondary sources such as e-waste and lithium-ion battery (LIB) scrap.

The battery recycling industry in India is growing robustly, driven by rising electric vehicle (EV) adoption, government regulations, and increasing environmental awareness.

Many companies are involved in battery recycling, focusing on lithium-ion, lead-acid, and other batteries. Here are some leading companies in the sector...

#1 Tata Chemicals

First on our list is Tata Chemicals.

The company focuses on both basic chemistry products such as soda ash, sodium bicarbonate, and salt, and specialty products including agrochemicals, seeds, specialty silica, and prebiotics. Tata Chemicals is the world's third largest soda ash producer.

Tata Chemicals entered the battery recycling industry by setting up a lithium-ion (Li-ion) battery recycling plant near Mumbai in 2019.

The plant operates a pilot-scale recycling process that recovers high-purity cathode active materials-such as lithium, cobalt, nickel, and manganese-from spent Li-ion batteries with over 99% purity.

This hybrid hydrometallurgy process involves extraction, selective separation, and purification of these valuable metals, which are then supplied as raw materials for new battery production and energy storage devices.

Tata Chemicals aims to scale up its recycling capacity to 500 tons of spent Li-ion batteries annually.

Tata Chemicals Financial Snapshot (FY23 to FY25)

	FY22-23	FY 23-24	FY24-25
Net Sales (Rs m)	167,890	154,210	148,870
Sales Growth %	33	-8.2	-3.5
Net Profit (Rs m)	24,520	4,490	3,540
ROCE %	12.5	5.4	4.2

Data Source: Equitymaster

On the financial front, the company reported revenues of Rs 37,190 m in Q1 FY26, against Rs 37,890 m in the corresponding period last year. The net profits jumped to Rs 2,740 m in Q1 FY26, from Rs 1,210 m YoY.

According to the company, the demand-supply balance in soda ash continues to be soft, coupled with uncertainties in soda ash trade driven by tariff changes.

The soda ash market continues to be over supplied, with high inventory levels in most regions. Prices weakened during Q1FY26. Overall global demand is estimated to be flat in the near term.

However, the medium to long term trend is positive driven by sustainability applications (Solar PV + EV growth), even with short term margin challenges.

While the recycling of batteries is a positive for the company, demand in core products remains a worry.

To know more you can click the Tata Chemicals fact sheet and latest quarterly results.

#2 Exide Industries

Second on our list is Exide Industries. The company is the largest manufacturer of lead-acid storage batteries in India.

It specialises in manufacturing storage batteries and power storage solutions. The company has 10 manufacturing facilities across India. It also has production units in Sri Lanka, the UK, and Singapore, with exports to over 60 countries.

Exide Industries operates three state-of-the-art battery recycling facilities near Pune, Bangalore, and Kolkata, each designed to meet the highest standards of environmental safety and efficiency.

These plants are equipped to handle the entire recycling process-from battery collection and dismantling to metal and plastic recovery-ensuring that over 99% of battery components are reclaimed and reused.

Exide Industries Financial Snapshot (FY23 to FY25)

	FY22-23	FY 23-24	FY24-25
Net Sales (Rs m)	150,782	167,697	172,379
Sales Growth %	17.9	11.2	2.8
Net Profit (Rs m)	8,228	8,828	8,005
ROCE %	10.8	10.3	9

Data Source: Equitymaster

On the financial front, the company reported revenues of Rs 46,951 m in Q1 FY26, against Rs 44,357 m in the corresponding period last year. The net profits jumped to Rs 2,742 m in Q1 FY26, from Rs 2,207 m YoY.

Moving ahead, Exide Industries is focusing primarily on expanding its lithium-ion battery manufacturing capabilities and strengthening its position in the EV battery market through its wholly-owned subsidiary, Exide Energy Solutions Ltd (EESL).

The company is constructing a 12 GWh lithium-ion cell manufacturing plant in Bengaluru in two phases of 6 GWh each. The commercial production is to start in phases with commercial production starting by end of FY26.

To know more check the Exide Industries fact sheet and latest quarterly results.

Conclusion

The government's approval of a Rs 15 billion (bn) incentive scheme to promote recycling of e-waste and battery waste for extraction of critical minerals is a welcome move.

Government policies supporting domestic battery manufacturing and recycling infrastructure will help reduce reliance on imported raw materials.

The potential for battery recycling in India is very strong, anchoring the country's ambitions for energy sustainability, resource security, and environmental protection as it accelerates its EV and renewable energy transition.

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Investors should evaluate the company's fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions.

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