Sustainable Charge: Battery Logistics & Circularity

As India accelerates its journey toward a net-zero future by 2070, one technology is silently powering the transition—batteries. From driving electric mobility to enabling clean energy storage, batteries are fast becoming the cornerstone of India's sustainable development ambitions. But this is not just a technological shift. It’s a comprehensive reimagining of how we produce, consume and reuse energy.

This edition of Logistics Focus titled, "Sustainable Charge: Battery Logistics & Circularity”, is at the center of this movement lies a dynamic ecosystem—embracing circular economy principles, transforming commercial fleets and redefining ownership models through innovations like Battery as a Service (BaaS).

Enabling a Circular Battery Economy

India is witnessing a shift from the traditional "use and dispose" model to a circular battery economy, where batteries are reused, repurposed and recycled for maximum value and minimal waste.

After their first life in EVs, batteries can be repurposed for secondary uses like home energy storage or telecom tower backups. At the end of their usable life, critical materials like lithium, cobalt and nickel can be recovered and fed back into the manufacturing cycle—reducing import dependency and supporting local sustainability goals.

By 2030, India could generate over 50 GWh of second-life batteries and 120 GWh of recyclable battery materials, signaling a huge opportunity for both environmental and economic impact.

Scaling India's Battery Manufacturing Ecosystem

To meet the projected demand of 220+ GWh annually by 2030, India is rapidly investing in domestic battery manufacturing capabilities.

The government’s Production Linked Incentive (PLI) schemes are catalyzing investments in gigafactories and localizing supply chains for Advanced Chemistry Cells (ACC). Emerging players like Attero, Lohum and Neogen are helping build a comprehensive value chain—from cell production to battery recycling and reuse.

This ecosystem is vital to reduce import dependence, create green jobs and position India as a global battery manufacturing hub.

Decarbonizing Freight with Electric Trucks

Heavy-duty trucks (HDTs) make up just 2% of India’s vehicle fleet but are responsible for nearly 45% of road transport emissions. Electrifying this segment through Zero-Emission Trucks (ZETs) is a key strategy for climate action.

Short-haul electric trucks are already being deployed in sectors like last-mile deliveries and intra-city logistics. Innovations in fast-charging, modular battery packs and telematics-based route optimization are enhancing their commercial viability.

As supportive infrastructure and financing models evolve, ZETs are set to transform India's logistics sector into a cleaner, more efficient network.

Battery-as-a-Service (BaaS): Redefining EV Ownership

Battery-as-a-Service (BaaS) is revolutionizing how consumers and businesses approach electric mobility. By separating battery ownership from vehicle ownership, BaaS reduces upfront costs and eliminates range anxiety.

Instead of purchasing batteries, users lease or subscribe to them. When depleted, batteries are swapped at designated stations in 1–3 minutes, drastically cutting downtime.

This model is particularly impactful across segments:

• Two- and Three-Wheelers: Widely adopted by delivery fleets and shared mobility platforms in urban centers. Startups like Battery Smart and SUN Mobility are leading deployment with major OEM partnerships.
• Four-Wheelers: Brands like Mahindra and MG Motor have introduced BaaS to make EVs more affordable for consumers by reducing vehicle costs by up to 40%.
• Heavy Vehicles: While still emerging, pilot projects are underway to integrate BaaS into larger trucks and buses, showing promise for high-utilization commercial transport.

Building a Supportive Policy and Regulatory Framework

India’s policymakers have taken several progressive steps to support the BaaS and battery innovation ecosystem:

• Defined battery swapping under EV charging infrastructure guidelines (2020)
• Allowed the sale of 2Ws and 3Ws without batteries (2020)
• Released standards for swappable battery safety and interoperability (2022 onwards)
• Introduced amendments in 2025 to support battery infrastructure deployment on public land

However, gaps still exist—notably the 18% GST applied to every battery swap, which increases total cost of ownership and disproportionately affects commercial EV users. There's a pressing need to rationalize GST and align policy incentives across states and technologies.

Unlocking the Next Phase of Growth: Strategic Recommendations

To fully realize the benefits of a battery-powered future, India must focus on the following strategic enablers:

1. GST Rationalization: Apply a flat 5% GST across certified EV batteries, including swappable units, to lower operating costs.
2. Policy Uniformity: Ensure that battery swapping infrastructure receives equal support as fixed charging stations.
3. Public-Private Collaboration: Scale pilot programs in urban transport and logistics with support from local governments and fleet operators.
4. Strengthen Circularity Mandates: Implement battery passports, enforce Extended Producer Responsibility (EPR) and incentivize recycling infrastructure.

Conclusion: Batteries as Catalysts for India's Green Future

Batteries are not just energy storage devices—they are enablers of an inclusive, low-carbon economy. By unlocking innovation across manufacturing, recycling, freight electrification and service-based ownership models, India is building a future where clean mobility is affordable, accessible and circular.

With coordinated action from industry, government and consumers, batteries can lead India’s transition to a greener, more resilient energy future.

We hope you will find this edition of Logistics Focus informative and thought-provoking.

The age of battery-powered India has begun—and its potential is electrifying.

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