Cabinet Clears Rs 1,500 Crore Scheme to Boost Critical Mineral Recycling
In a major step towards strengthening India’s supply chain for critical minerals, the Union cabinet chaired by prime minister Narendra Modi has approved a Rs 1,500 crore incentive scheme aimed at building domestic recycling capacity. The scheme, which falls under the National Critical Mineral Mission (NCMM), will focus on extracting key minerals from secondary sources like e-waste and used batteries.
✅ Bottom line: With this scheme, india is not just investing in recycling but in future-proofing its clean energy and EV industries.Disclaimer:The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of any agency, organization, employer, or company. All information provided is for general informational purposes only. While every effort has been made to ensure accuracy, we make no representations or warranties of any kind, express or implied, about the completeness, reliability, or suitability of the information contained herein. Readers are advised to verify facts and seek professional advice where necessary. Any reliance placed on such information is strictly at the reader’s own risk.
Why Critical Minerals Matter
Critical minerals such as lithium, cobalt, nickel, and rare earths are essential for:Electric vehicle (EV) batteriesRenewable energy technologiesElectronics manufacturingDefence and aerospaceWith global demand for these resources rising, india aims to reduce import dependency and secure its long-term energy transition goals.Key Features of the Scheme
1. Tenure & Budget
Outlay: Rs 1,500 croreDuration: FY 2025-26 to FY 2030-31 (6 years)2. Eligible Feedstock
E-wasteLithium-ion battery (LIB) scrapOther scrap, such as catalytic converters from end-of-life vehicles3. Who Can Apply?
Large established recyclersSmall/new recyclers and start-ups (with one-third of funds earmarked for them)4. Types of Incentives
Capex subsidy:20% subsidy on plant, machinery, and utilitiesHigher benefits for units starting production on timeOpex subsidy:Incentive on incremental sales beyond FY 2025-26 levels40% subsidy in 2nd year, 60% in 5th year5. Incentive Ceiling
Large entities: Max Rs 50 crore (Opex cap Rs 10 crore)Small entities: Max Rs 25 crore (Opex cap Rs 5 crore)Expected Impact
Recycling capacity: 270 kilo tonnes annuallyCritical mineral output: ~40 kilo tonnes per yearInvestment attracted: ~Rs 8,000 croreJob creation: ~70,000 direct and indirect jobsWhy This Matters
India’s domestic mining ecosystem for critical minerals is still at an early stage, and exploration-to-production has a long gestation period. Recycling provides a near-term, sustainable solution to secure supply while reducing environmental impact.The move also data-aligns with global trends, as countries worldwide are racing to establish circular economies for green minerals to meet climate goals.✅ Bottom line: With this scheme, india is not just investing in recycling but in future-proofing its clean energy and EV industries.Disclaimer:The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of any agency, organization, employer, or company. All information provided is for general informational purposes only. While every effort has been made to ensure accuracy, we make no representations or warranties of any kind, express or implied, about the completeness, reliability, or suitability of the information contained herein. Readers are advised to verify facts and seek professional advice where necessary. Any reliance placed on such information is strictly at the reader’s own risk.