Amara Raja Energy and Mobility Ltd is set to begin operations at its new lead-acid battery recycling plant in Tamil Nadu by the end of November. The greenfield facility aims to boost the company’s use of recycled lead in its manufacturing process, with the plant eventually expected to supply 25-30% of the company’s raw material needs.
Delli Babu, CFO of Amara Raja, confirmed in a post-earnings call that the plant, located in Cheyyar, will start refining operations by the end of this month, with battery-breaking processes scheduled to begin in the fourth quarter of the financial year. The plant, established under the company’s subsidiary, Amara Raja Circular Solutions, will have an initial recycling capacity of 100,000 metric tons per year, with plans to scale up to 150,000 metric tons in subsequent phases.
Equipped with state-of-the-art technologies like a de-sulphurization system and oxy-fuel technology, the facility is designed to minimize CO2 emissions and lead content in slag, promoting high operational efficiency and environmental sustainability.
Battery recycling is a crucial strategy for ensuring long-term cost efficiency and supply chain security, especially as the demand for raw materials grows. It also plays a key role in reducing the environmental footprint of battery waste. Amara Raja’s recycling efforts already contribute to 83% of the lead used in its battery production.
The company’s closed-loop system involves collecting used batteries from dealers, recycling them through third-party processors, and using the recovered lead to manufacture new batteries. Amara Raja Circular Solutions actively engages in this process, providing battery replacements to customers while ensuring compliance with government regulations on battery recovery targets.
The company expects the recycling facility to help lower material costs, with the potential to reduce lead recovery costs by 1.5-2% as recovery rates improve. Amara Raja is a prominent Indian industrial group best known for its expertise in energy storage solutions, especially through its Amara Raja Batteries division, one of India’s largest battery manufacturers.
Serving sectors like automotive, industrial, and energy, Amara Raja has become a leader in manufacturing lead-acid and lithium-ion batteries, catering to both domestic and international markets. In recent years, the company has focused on sustainability by investing in green technology initiatives, including setting up a lead-acid battery recycling plant to reduce reliance on raw material imports and enhance environmental responsibility. Amara Raja’s emphasis on innovation, combined with its commitment to sustainable practices, places it at the forefront of India’s clean energy and circular economy transformation.
