Nepal's EV Battery Recycling Challenge: Industry Leader Urges Comprehensive Policy Beyond Importer Responsibility

Akash Golchha, a prominent figure in Nepal's automobile industry and founder of the Nepal Automobiles Importers and Manufacturers Association (NAIMA), has issued a critical call for a robust and comprehensive policy framework to manage battery waste in the country. Speaking at a recent NAIMA-organized dialogue on 'Battery Recycle and Ethanol Blending,' Golchha emphasized that the responsibility for battery recycling cannot solely rest on vehicle importers. He advocated for the establishment of dedicated recycling companies, drawing parallels with successful models in India.

Golchha highlighted that the challenge extends beyond electric vehicle (EV) batteries to include those found in mobile phones, laptops, and other electronic devices. He underscored the urgent need for a systematic approach to battery management, lamenting the current absence of clear legal provisions and a comprehensive understanding of the situation by the government. The open border with India further complicates matters, as many old mobile and laptop batteries are informally transported across the border or simply discarded in rivers and landfills, posing significant environmental hazards.

A key point raised by Golchha was the distinction between managing traditional lead-acid batteries and modern lithium-ion batteries. While lead-acid batteries often retain some market value, discouraging their indiscriminate disposal, the situation for lithium-ion batteries is starkly different. Current regulations tend to place the onus of battery management on vehicle importers. However, Golchha pointed out that importers typically only receive batteries back under warranty claims. There is a critical lack of legal clarity regarding the responsibility for batteries from vehicles damaged in accidents or those that have reached their end-of-life outside of warranty periods. This ambiguity could unfairly penalize importers, even when the batteries are no longer in their possession but rather with consumers who might dispose of them improperly.

To address this multifaceted problem, Golchha proposed a system where responsibility is shared among all stakeholders: the government, consumers, and relevant industry players, rather than being exclusively borne by importers. He also shed light on the difficulties associated with exporting batteries from Nepal. Current provisions often require a specific value for battery exports, yet importers frequently acquire used batteries at zero cost. Golchha suggested that establishing a fair market value for exported batteries could significantly curb their diversion into the grey market, necessitating clear legal frameworks to facilitate this.

Drawing inspiration from India, where the government provides a rebate of NPR 2 to 5 per kilogram for battery recycling, Golchha urged Nepal to adopt similar incentive-based policies. He noted that lead-acid batteries are currently exported to India without taxation, highlighting a missed opportunity for value creation and formalization within Nepal. For lithium-ion batteries, even in the absence of full-fledged recycling infrastructure, Golchha suggested that 'black mass' – the processed material containing valuable metals – could be exported to India for further refinement, thereby adding value to the domestic economy.

Golchha cautioned against the government imposing stringent rules without first developing the necessary infrastructure and clear guidelines, citing potential pitfalls similar to those experienced in Nepal's steel industry. He reiterated that in India, battery management and recycling are handled by specialized companies, not directly by vehicle importers. Therefore, he strongly recommended that the Nepali government legally license and empower dedicated recyclers to undertake the collection and processing of batteries, ensuring a structured and environmentally sound approach to this growing waste stream. The development of such policies is not merely an environmental imperative but also an an economic opportunity, positioning Nepal to manage its waste responsibly while potentially fostering a new segment of the circular economy.