The Future of EV Battery Recycling in Nepal: Turning Waste into Economic Opportunity

The invention of the steam engine by the British in 1769 was an unprecedented event in human history. The steam engine helped pave the way for massive imperial expansion worldwide. With its help, the British expanded their rail network. 

This steam engine was based on an 'external combustion engine' system, where fire was applied externally, and the resulting energy turned pistons to operate the machine. The energy efficiency rate of this engine was 23 percent.

Thereafter, the world transitioned from the 'external combustion engine' to the 'internal combustion engine.' In this system, fuel was injected inside the engine to generate energy. By fully commercializing this, America made a huge leap. It brought motor vehicles within the reach of the general public. The energy efficiency of this engine is only 30 percent for petrol and 45 to 48 percent for diesel.

In recent days, unprecedented changes are occurring worldwide in the production, use, storage, and control of energy. The world's energy system, which has been based on mineral petroleum until now, is seen to be transitioning toward renewable energy.

Along with this, an important and long-term challenge is emerging: the management of used high-voltage EV batteries.

According to the important book 'The Third Industrial Revolution' written by American thinker Jeremy Rifkin in 2011, the steam engine played a significant role in the first industrial revolution that brought the British to power. The second industrial revolution was based on the combustion engine, after which America rose to power. The world of the future will be led by whoever controls renewable energy. Perhaps China will now emerge as a superpower because it has made the biggest leap in renewable energy.

The energy efficiency of electric vehicles powered by renewable energy is over 85 percent. Similarly, it is estimated that the energy efficiency of machines based on hydrogen fuel will be over 95 percent. It must be due to the changing use and storage of energy that the use of electric vehicles (EVs) in Nepal has increased significantly in the last few years.

Due to environmental protection, the need to reduce fuel imports, and government incentive policies, the popularity of EVs is expanding rapidly. However, along with this, an important and long-term challenge is emerging: the management of used high-voltage EV batteries.

Until now, most EV importers and distributors in Nepal have been following the practice of sending used batteries back to recycling companies abroad. While this management seems easy for the short term, in the long run, it has limited the economic, industrial, and technical opportunities that could be created within the country. In fact, it is necessary to develop a perspective that views these batteries as a resource rather than waste.

• Current Situation and Future Challenges

According to current data, about 30,000 to 35,000 fully electric four-wheelers (cars, jeeps/vans, pickups, and buses, trucks) have entered Nepal. Also, the import rate of EV vehicles is increasing rapidly. Due to the tension/war between Iran-America-Israel in the Middle East region, EV imports are likely to increase further.

Even though the battery capacity decreases when used in vehicles, they do not become completely inactive. Generally, 60 to 80 percent capacity remains, which can be useful for other purposes.

It is estimated that the high-voltage batteries used in most of these vehicles have an average lifespan of 6 to 8 years. This means that within the next few years, there will be a need for battery replacement in large quantities. If this cannot be managed in time, it could become an environmental challenge. However, if proper planning and policies are formulated, this challenge can be transformed into an economic opportunity.

• Possibility of Battery Rebirth

Even though the battery capacity decreases when used in vehicles, they do not become completely inactive. Generally, 60 to 80 percent capacity remains, which can be useful for other purposes. In a country like Nepal, where there is still an imbalance in electricity production and distribution, such batteries can be used as energy storage systems.

Especially when combined with solar energy, the energy produced during the day can be stored and used at night or as needed. These batteries can also be extremely useful for developing micro-grid systems in rural and remote areas. This not only stabilizes the national power system but also contributes significantly to expanding energy access.

In Nepal, technology related to battery repair and reuse is still in its initial stages. However, if investment and research can be increased in this sector, many batteries can be brought back into operation. There is a possibility to further extend the life of batteries by changing small components such as cells, modules, Pyro Switches, BMS, etc.

For this, collaboration between the Nepal Academy of Science and Technology (NAST), the National Innovation Center, technical institutions, and the private sector is necessary. Through research, testing, and the development of local solutions, Nepal can build its own capacity.

• Self-reliance in Metals and Raw Materials

When a battery is no longer fully usable, it can be scientifically destroyed to extract valuable metals. Metals like lithium, nickel, cobalt, manganese, copper, and aluminum are extremely expensive in the international market, and Nepal imports them in large quantities. EV battery housing is often made entirely of aluminum. This can be fully recycled and used in other aluminum industries as well.

So, what is immediately necessary for policy reform and government initiatives? First, there is a need for clear policies, standards, and action plans in this sector.

If such materials can be recovered within the country, it will reduce the import of raw materials and provide great help in saving foreign currency. Also, such materials can be reused to create new products.

The development of battery reuse and recycling industries can open the door to a new industrial sector in Nepal. It will have a positive impact on areas such as skilled manpower development, technical knowledge transfer, job creation, and increased local production. Also, a value chain can be built within the country to complete the EV ecosystem.

So, what is immediately necessary for policy reform and government initiatives? First, there is a need for clear policies, standards, and action plans in this sector. For this, the government can take the following initiatives:

• First, formulation of policy regarding EV battery reuse and recycling.
• Second, arrangements for tax exemptions and subsidies for the private sector.
• Third, investment in research and development.
• Fourth, concrete initiatives for international technology partnership.
• Fifth, tightening safety and environmental standards.

If there can be collaboration between the government, the private sector, and research institutions, Nepal can set an example at the regional level in this sector. Used EV high-voltage batteries are not just a matter of management; they are also an opportunity for Nepal's economic and industrial transformation.

 If the entire cycle from vehicle use to energy storage and ultimately raw material recovery can be developed within the country, it is certain to help build a self-reliant economy in the long run.

Now, all that is needed is vision, policy initiatives, and practical implementation. It would be in Nepal's interest to make maximum use of them within the country before sending them abroad. It is necessary for the new government formed with a large mandate to take concrete initiatives on this matter.

(The author Pokharel is an automobile and EV expert.)