Dry cell battery makers struggle to recharge under new recycling rules

India's stricter battery recycling targets under EPR rules are forcing dry cell makers to seek relief, explore new collection models, and tackle rising costs and ecosystem gaps

Indians buy anywhere between 2.5 billion and 3 billion dry cell batteries each year to power remote controls, flashlights, toys, clocks, and many other household items. In the past, almost all of these were dumped in landfills or even burnt, with little to no recycling in place.

 

In 2026, however, stringent government collection targets for batteries are creating new challenges for dry cell manufacturers. Some players are planning innovative collection schemes, such as offering free new batteries in exchange for used ones, while the industry is simultaneously lobbying the government to ease the higher recycling targets set for the year or defer current deadlines. Industry majors are also discussing a common collection mechanism at the industry level.

 

Under the new norms, producers must collect end-of-life batteries corresponding to those they place on the market, with a defined time lag. For 2025–26, the collection target is set at 50 per cent of the batteries a company sold in 2022–23. This rises to 60 per cent in 2026–27, with a gradual increase in subsequent years. Failure to meet these targets will attract heavy fines.

 

This is expected to deal a major blow to India’s dry cell battery market, valued at ₹3,900-4,000 crore. Alkaline batteries account for around 15 per cent of the market, or roughly ₹550-600 crore.

 

“The target set by the government is too high for the industry to meet, especially in a large country like India. We are requesting the government to lower the target, as, unlike lead-acid batteries used in automobiles, dry-cell battery collection is not easy. However, several collection models are under consideration, including offering free batteries in return for used ones, creating a common collection mechanism for all industry players, and tying up with waste management companies across the country,” said Pavan Kumar B V S, chief executive officer (CEO) of Indo National, which manufactures the Nippo brand.

 

Market leader Eveready Industries India’s Executive Director and Chief Financial Officer Bibek Agarwala echoed these concerns, adding that alternative solutions have been presented to ministries and benchmarked against global standards.

 

The penalty, or environmental compensation, depends on the metals used in the battery composition and can range from ₹2,400 per kilogram (kg) for zinc to ₹555 per kg for manganese. “These penalties are multiple times higher than the cost of virgin metal, which can impose a huge burden on the industry initially, especially as only a portion of the used battery is reusable,” Kumar added.

 

According to the industry, the government’s targets are challenging to implement in a country like India, where dry-cell battery recollection is far more complex than lead-acid systems. Even in advanced markets such as Switzerland and Belgium, collection rates of 70 per cent were achieved only after 10-15 years of sustained ecosystem development. The move is likely to impose a significant initial burden, particularly since only a limited portion of collected batteries is recyclable.

 

Agarwala said the proposed guidelines pose challenges not just for the industry but for the broader ecosystem, beginning with the need to build consumer awareness. “We are working across centres to drive consumer awareness. There are at least 30-40 initiatives underway at this point,” he said. However, starting at a 50 per cent target will be difficult given India’s current ecosystem. “Whether a deferral of a couple of years is needed, followed by a gradual rampup, is something the industry is taking up,” he added.

 

The targets are based on the Battery Waste Management Rules, 2022, which apply to all battery categories, including electric vehicle batteries, portable batteries (dry cell, zinc-carbon, and alkaline), automotive batteries, and industrial batteries.

 

For producers, reuse targets will kick in from 2027-28, starting at 5 per cent and increasing progressively. According to the guidelines, all collected batteries must be processed only through authorised recyclers. While the framework is uniform, implementation for dry-cell batteries requires tailored solutions due to their low economic value and highly dispersed usage.

 

The rules are based on the concept of Extended Producer Responsibility (EPR), under which producers (including importers) are responsible for the collection and recycling of waste batteries, as well as the use of recovered materials in new batteries. The rules mandate that all waste batteries be collected and sent for recycling, and prohibit disposal in landfills or incineration.

 

Late last month, Eveready commissioned India’s first alkaline battery manufacturing unit in Jammu, aiming to strengthen its branded play while tapping white-label and private-label opportunities in domestic and international markets.

 

Anirban Banerjee, CEO of Eveready, highlighted the plant’s role in advancing recycling and sustainability. “One alkaline battery is typically three to four times more powerful than zinc batteries.”

 

“As we accelerate the adoption of alkaline batteries in the country, the overall quantum of zinc, over time, will eventually decline,” Banerjee added.