A few months ago, the operations head at VoltEdge Mobility found himself frustrated. Their EV fleet had grown rapidly, and so had the pile of old battery packs sitting in a corner of their warehouse. Transporters refused to touch them because of fire risks. Recyclers didn’t want to collect small volumes. OEMs kept pushing responsibility back through EPR. That’s when he thought: “If nobody wants to do this properly, maybe it’s time we set up our own battery collection and aggregation centre.”
This story is becoming extremely common. And if you’re reading this, you’re probably exploring the same idea — building a legal, safe and profitable battery aggregation centre that sits right between OEMs and recyclers.
This guide is written to help you do exactly that.
Most people assume that EV battery recycling is the only profitable segment in the battery end-of-life chain. In reality, battery aggregation is one of the fastest-growing opportunities because it solves logistics, safety and EPR compliance challenges that almost every fleet operator and OEM is now facing.
The EV market has exploded. Battery swapping networks, last-mile delivery fleets, large-format ESS systems in commercial buildings — all of them generate used or “retired” lithium batteries every month. Recyclers often prefer bulk loads; producers need traceable collection partners; and fleets don’t want to risk storing batteries unsafely.
Your aggregation centre becomes the bridge that solves all three problems.
Before discussing licences or warehouse design, it’s important to understand the exact position of your business in the ecosystem.
A typical battery journey looks like this:
OEMs → Dealerships → Fleets → Aggregation Centre → Recycler/Refurbisher → Producer (EPR Reporting)
Your aggregation centre is the stable middle layer responsible for:
In short, your centre enables the legal and smooth flow of batteries from the generator to the recycler.
Battery Waste Management Rules define how batteries must be collected, stored, transported, refurbished and recycled. Although the rules talk about producers, refurbishers, recyclers and bulk consumers, they do not define “aggregation centre” as a specific category.
This means your compliance structure depends on what exactly you do:
storage, grading, movement, or dismantling.
Your model is safest when it focuses on storage + grading + logistics, rather than dismantling.
There is no single document with this name. Instead, a compliant battery collection centre needs a bundle of approvals, depending on the state, activity level, and battery volume.
Below is the combined structure investors actually need to follow.
These are basic requirements for any B2B operation:
| Licence Type | Why It’s Needed | Notes |
|---|---|---|
| Trade Licence | For operating a warehouse/commercial space | Mandatory in most municipalities |
| Shops & Establishments | For employing staff | Needed for HR compliance |
| Building Use / Land Use Clearance | To ensure zoning allows battery storage | Industrial/logistics zones preferred |
| Fire NOC | For storing flammable/energy-dense batteries | Fire Dept will inspect layout, exits and fire systems |
| Labour registrations | Depending on employee count | For payroll compliance |
| Approval | Required When | Notes |
|---|---|---|
| Consent to Establish (CTE) | If the centre stores significant battery volumes | Varies state to state |
| Consent to Operate (CTO) | Once the facility begins operations | Usually renewed periodically |
| Hazardous Waste Authorization | Only if you dismantle battery packs | Not needed for pure storage |
Even though you are not a producer, you must ensure:
Your aggregation centre becomes part of the official traceability chain.
Most investors underestimate the importance of warehouse engineering. Batteries are energy-dense and can cause fires if mishandled.
A well-designed shed not only keeps you compliant but also makes OEMs and recyclers trust you.
Below is a practical layout followed by most safe aggregation centres:
Fire departments expect:
This is mandatory if you want a Fire NOC.
This business model has multiple secure revenue streams.
| Revenue Stream | How You Earn | Why It’s Attractive |
|---|---|---|
| Per-kg resale margin | Buy used batteries → Sell to recycler/refurbisher | Main profit driver |
| EPR-linked service fees | Producers/PROs pay per kg for collection, storage, documentation | Stable recurring income |
| Testing & grading | Classifying batteries by health and chemistry | Adds value for refurbishers |
| Logistics fee | Pickup charges from fleets & OEMs | Additional income stream |
With steady sourcing and long-term recycler contracts, margins are generally healthy at scale.
Many operators are tempted to open battery packs to increase sale value. But the moment you cross into dismantling, your compliance and fire risks increase sharply.
| Activity | Aggregation | Dismantling |
|---|---|---|
| Opening battery packs | No | Yes |
| HW Authorization required | No | Yes |
| Fire risk | Low | High |
| SPCB scrutiny | Low | High |
| Insurance requirements | Moderate | Heavy |
| Startup time | Fast | Slow |
| Skill requirement | Basic | Technical |
If you’re setting up your first centre, start with pure aggregation. You can expand later.
The biggest risks come from shortcuts:
A single fire incident can destroy your business overnight.
This is where many businesses lose money. A strong contract protects you from disputes and liabilities.
Most aggregation businesses start by working under a recycler or producer’s EPR structure.
You should consider direct registration only if:
Otherwise, aggregation works smoothly with strong contracts and documentation.
A lithium battery collection and aggregation centre is one of the most practical, scalable and immediately profitable ventures in the EV and energy-storage ecosystem. With India’s EV penetration and ESS installations rising sharply, the volume of retired batteries will only increase.
If you choose the right land, engineer a safe warehouse, secure long-term recycler partnerships and maintain strong documentation, your business can deliver solid returns with manageable risk.
For customised guidance on licences, land, cost modelling, layout design and end-to-end compliance, our team can help you plan everything step-by-step.
📞 +91 78350 06182
📧 wecare@greenpermits.in
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There’s no single licence—you need a trade licence, Fire NOC, land-use approval, and in some states SPCB consent.
Not unless you become a producer, recycler or refurbisher. Aggregators work under authorised recyclers or PROs.
Only if you dismantle battery packs. Pure storage and grading usually don’t require it.
Through per-kg resale margins, EPR service fees, testing/grading charges, and logistics fees.
Most centres begin with 2,000–5,000 sq. ft., depending on volume and storage layout.
