Southeast Asia’s Battery Waste Dilemma: A Race Against Time

As global capital pivots toward clean tech and ESG-oriented returns, Southeast Asia finds itself at the crossroads of the green transition—not because of what it builds, but because of what it leaves behind. The region is quietly amassing a mountain of lithium-ion battery waste, a byproduct of its surging appetite for electric vehicles (EVs), smartphones, and solar storage. Yet, amid the celebratory headlines about new EV factories and battery gigaplants, one question remains stubbornly unanswered: Who will clean up the mess?

From Vietnam to Indonesia, governments are aggressively courting battery and EV investment. Indonesia is positioning itself as the world’s nickel hub; Vietnam’s VinFast is eyeing global dominance; Thailand has become the ASEAN darling for Chinese and Japanese EV manufacturers. But for all the momentum on the production side, battery recycling remains an afterthought, under-resourced and under-regulated.

The Coming Tsunami

According to the International Energy Agency, Southeast Asia will collectively generate over 250,000 tonnes of lithium-ion battery waste annually by 2030, up from less than 20,000 tonnes today. Yet, fewer than a dozen facilities in the region are technically equipped to recycle these batteries at scale—and most of them are geared toward lead-acid, not lithium-ion.

This imbalance is not just a technical issue. It is a governance failure, a blind spot in industrial policy that could have dire environmental consequences. Without proper treatment, lithium-ion batteries risk contaminating landfills, leaching heavy metals into groundwater, and in worst cases, exploding in municipal waste streams.

ESG: Lip Service or Leverage?

The irony is that many Southeast Asian nations have begun to embrace ESG principles—at least on paper. Malaysia and Thailand have introduced ESG disclosure mandates for listed companies. Vietnam is drafting extended producer responsibility (EPR) legislation. Indonesia, despite its environmental challenges, touts its green industrial parks and carbon offset ambitions.

But in practice, ESG often remains a check-the-box exercise, particularly in the battery value chain. Most EV and electronics manufacturers in the region lack a formal take-back program. And while EPR laws are being proposed, enforcement is weak or non-existent.

This presents both a risk and an opportunity. Investors and regulators alike are beginning to scrutinize the Scope 3 emissions and waste liabilities of clean tech supply chains. Those countries that can offer not just production but circularity—a full cradle-to-cradle ecosystem—will have a competitive edge.

Lessons from the North

China offers a cautionary and instructive example. Faced with a similar problem five years ago, Beijing enacted sweeping policies mandating traceability, recycling quotas, and OEM responsibility. Today, Chinese players like CATL and GEM Co. operate closed-loop systems that recover over 90% of cobalt and nickel from spent EV batteries. These companies are now exporting their expertise—ironically, to Southeast Asia.

Thailand is perhaps the most prepared to follow suit. Its National EV Policy Committee has earmarked battery recycling as a strategic priority. Recycling firms like TES-AMM and SCG Chemicals are already piloting lithium-ion recovery plants. But elsewhere, progress is patchy. Vietnam lacks processing capacity. Indonesia is focused on upstream nickel refining, not downstream waste. Malaysia has the regulatory framework, but little domestic volume.

Circular Capitalism or Linear Failure?

The path forward demands regional collaboration and foreign partnership. No single ASEAN country has the scale or expertise to build a circular battery economy alone. But together—with harmonized standards, cross-border recycling zones, and joint ventures with Chinese, Japanese, or Korean recyclers—the region could leapfrog into a sustainable position.

The alternative is grim: a fragmented patchwork of regulations, informal waste trade, and a growing pile of toxic tech debt. The region’s green ambitions will be undermined not by what it fails to manufacture, but by what it fails to manage.

In the race toward clean energy, it's not just about building the batteries—it’s about knowing what to do when they die.