Nepal Confronts EV Battery Recycling Challenge: Stakeholders Urge Comprehensive Policy, Tracking, and Investment

As Nepal experiences a rapid surge in the adoption of electric vehicles (EVs), an urgent and critical need has emerged for a robust legal framework and a systematic tracking system to manage the end-of-life cycle of EV batteries. This pressing issue was the central theme of the 'NADA Mobility Dialogue' held during the 'NADA Nepal Mobility Expo 2024', where experts and industry stakeholders convened to discuss 'Battery Recycling and Ethanol Blending in Fuel'. The consensus among participants highlighted the imperative for proactive policy development to address the environmental and economic implications of this growing sector.

Currently, EV registration in Nepal primarily focuses on chassis and motor numbers, a practice deemed insufficient for effective battery management. Suresh Shrestha, Head of the Vehicle Fitness Test Center, emphasized the necessity of separate registration for each EV battery, complete with a unique identification number. Such a system would facilitate seamless tracking throughout the battery's lifecycle, significantly mitigating the risks of improper disposal or their unregulated entry into the scrap market. This proactive approach is crucial to prevent future environmental hazards and ensure responsible resource management.

Akash Golchha, a founding member of NADA and a prominent auto entrepreneur, underscored that the responsibility for battery management extends beyond just vehicle importers. He argued for a shared accountability model involving the government, consumers, and all relevant stakeholders. Golchha pointed out that Nepal's open border with India and the existing lack of clear legislation pose significant challenges to effective battery management. Drawing parallels, he noted that even batteries from mobile phones and laptops contribute to environmental risks, advocating for the government to mandate collection responsibilities solely to licensed recyclers to ensure proper handling and processing.

International insights further reinforced the urgency of the situation. Prof. Dr. Balraj Bhanot from India's Centre Motor Vehicle Rules warned that Nepal is likely to face a substantial volume of battery replacements within the next four to five years. He strongly recommended the immediate implementation of an 'Extended Producer Responsibility' (EPR) policy, a global best practice where manufacturers are responsible for the entire lifecycle of their products. Dr. Bhanot suggested a mandatory system where consumers must return old batteries when purchasing new ones, ensuring that all used batteries are directed to certified recycling plants. Jatin Makkar of Lohum Cleantech, an Indian company, further highlighted the economic potential of EV batteries, urging stakeholders to view them not merely as hazardous waste but as valuable assets due to their rich content of precious metals like lithium, cobalt, and nickel.

Beyond battery management, the dialogue also touched upon the critical topic of ethanol blending in fuel. Prof. Dr. Bhanot shared India's experience, cautioning against a rapid increase in ethanol content, which could potentially lead to compatibility issues with older vehicles and existing fuel supply infrastructure. He advised Nepal to proceed with ethanol blending only after thorough assessment of its technical infrastructure and vehicle compatibility, ensuring a smooth and sustainable transition.

To ensure the financial viability and sustainability of battery management, Sagar Gajurel, former President of the Auto Journalist Association, proposed a policy requiring EV importing companies to mandatorily invest in battery management industries, proportional to their sales volume. This would create a dedicated funding mechanism for the nascent recycling sector. Karan Khurana, CEO of Rebatt India, echoed this sentiment, emphasizing the need for a separate, specialized industry dedicated to battery recycling. The government, acknowledging these concerns, confirmed that a draft for 'end-of-life' battery management is currently being prepared as part of the new transport policy, alongside initiatives to promote electric vehicles. This proactive step by the government signals a commitment to developing a comprehensive and sustainable framework for Nepal's burgeoning EV ecosystem, presenting both challenges and significant investment opportunities for the future.