Major battery manufacturers in India, including Panasonic Energy India and Eveready, are pushing back against new recycling rules. They argue the Battery Waste Management Rules 2022 impose costs designed for high-value lithium-ion batteries onto cheap zinc-carbon cells. Panasonic reportedly said compliance could cost 50 crore rupees, far above its expected profit of 6 crore rupees for the year. The industry wants regulators to adjust targets for dry cell batteries that have low scrap value and no existing collection network. Under the Extended Producer Responsibility system, companies must buy EPR certificates from recyclers to prove they meet recycling quotas. For zinc-carbon batteries, which make up roughly 85% of India's battery market, the certificate costs are not matched by any realistic recovery of waste material. Manufacturers say this turns a compliance rule into a recurring expense that could threaten margins and force price hikes. Investors should watch for any amendments from the Ministry of Environment or changes in EPR certificate pricing. The core tension is between policy intent and market reality. Lithium-ion batteries have enough residual value to fund collection and recycling. Zinc-carbon cells do not. If the government does not differentiate between battery chemistries, the rules could end up punishing the dominant product segment without achieving meaningful recycling rates. The next quarterly earnings calls will show whether companies are setting aside larger provisions or lobbying for relief.
