#CriticalMinerals #NationalCriticalMineralMission #BatteryRecycling #EWasteManagement #GreenEconomy #SustainableDevelopment #AtmanirbharBharat #CabinetDecisions #CleanEnergy #CircularEconomy
New Delhi – In a landmark move towards strengthening India’s self-reliance in critical minerals, the Union Cabinet, chaired by Prime Minister Narendra Modi, has approved a ₹1,500 crore Incentive Scheme aimed at promoting the recycling of critical minerals from secondary sources such as e-waste and battery scrap.
The scheme is a part of the National Critical Mineral Mission (NCMM), which focuses on ensuring long-term supply chain resilience, capacity building, and strategic resource security for India’s fast-growing industries like electric mobility, renewable energy, electronics, and advanced manufacturing.
Why Recycling Matters Now
Critical minerals such as lithium, cobalt, nickel, and rare earth elements are essential for sectors ranging from electric vehicles and energy storage to semiconductors and defense applications. However, the exploration and mining of these resources have long gestation periods, and global supply chains are often vulnerable to disruptions.
By focusing on recycling secondary sources, such as discarded lithium-ion batteries, e-waste, and catalytic converters from end-of-life vehicles, India can secure a domestic stream of critical minerals while reducing its import dependency.
Officials stressed that the scheme provides a prudent short-to-medium-term solution, complementing India’s long-term strategies of mineral exploration and overseas asset acquisitions.
Tenure and Scope of the Scheme
The scheme will run for six years, spanning FY 2025-26 to FY 2030-31. It is designed to support:
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New recycling units
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Expansion of existing facilities
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Modernization and diversification of units
Both large recyclers and small/new players (including start-ups) will benefit. Importantly, one-third of the outlay has been earmarked for small recyclers and start-ups, ensuring inclusivity and encouraging innovation-driven entrants in the recycling ecosystem.
Incentive Structure
The incentive package will be provided in two forms – Capex Subsidy and Opex Subsidy.
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Capex Subsidy:
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20% subsidy on capital expenditure for plant, machinery, equipment, and utilities.
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To qualify, production must start within the specified time frame; otherwise, reduced subsidy will be applicable.
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Opex Subsidy:
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Linked to incremental sales over the base year (FY 2025-26).
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40% of eligible subsidy in the second year, with the remaining 60% in the fifth year (FY 2026-27 to FY 2030-31).
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Ceiling Limits:
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Maximum total incentive (Capex + Opex) capped at ₹50 crore for large entities and ₹25 crore for small entities.
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Opex subsidy capped at ₹10 crore for large and ₹5 crore for small recyclers.
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This structure ensures wider participation and prevents a few large entities from cornering the benefits.
Expected Outcomes
The government has outlined ambitious yet achievable outcomes from this scheme:
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Recycling Capacity: At least 270 kilo tonnes per annum (KTPA) of recycling capacity will be developed.
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Mineral Output: Around 40 kilo tonnes of critical mineral production annually.
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Investments: Nearly ₹8,000 crore of fresh investments expected in recycling infrastructure.
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Employment: Close to 70,000 direct and indirect jobs will be created across collection, dismantling, processing, and extraction value chains.
Additionally, the scheme will contribute significantly to reducing environmental hazards posed by unmanaged e-waste and discarded batteries.
Consultative Approach
The scheme’s design followed several rounds of consultations with industry representatives, start-ups, environmental experts, and other stakeholders. These discussions included dedicated meetings, seminar sessions, and policy workshops, ensuring the scheme is both industry-friendly and environmentally sustainable.
Part of a Bigger Mission
The National Critical Mineral Mission (NCMM) is India’s holistic strategy to secure critical minerals for its long-term industrial and strategic requirements. The mission encompasses:
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Exploration and mapping of domestic resources
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Auction and operationalization of critical mineral mines
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Acquisition of foreign assets to diversify supply sources
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Recycling as a short-term and sustainable pathway
By combining recycling with mining and international partnerships, NCMM aims to reduce India’s vulnerability to global supply chain shocks, especially in the wake of rising global demand for clean energy technologies.
Significance for India’s Green Economy
This scheme aligns with India’s ambitious goals under the National Electric Mobility Mission and renewable energy targets. With electric vehicle adoption picking pace and large-scale battery storage becoming a necessity for solar and wind energy integration, the demand for lithium, cobalt, and nickel is set to rise exponentially.
By tapping secondary sources, India not only secures access to these critical materials but also reduces its carbon footprint, strengthens its circular economy, and contributes to global efforts toward sustainable resource management.
Conclusion
The Cabinet’s approval of the ₹1,500 crore Critical Mineral Recycling Incentive Scheme represents a transformational step in India’s journey toward self-reliance in critical minerals. By blending financial incentives with inclusive participation and environmental sustainability, the scheme is expected to accelerate investment, create jobs, and ensure supply chain resilience.
With projected outcomes including 270 KTPA recycling capacity, 40 KTPA mineral production, ₹8,000 crore investment, and 70,000 jobs, the scheme stands as a model of forward-looking policymaking.
As India aims to become a global leader in clean energy and advanced manufacturing, initiatives like this will ensure that its industries are not handicapped by resource shortages but instead empowered by a resilient and sustainable critical minerals ecosystem.
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#CriticalMinerals #NationalCriticalMineralMission #BatteryRecycling #EWasteManagement #GreenEconomy #SustainableDevelopment #AtmanirbharBharat #CabinetDecisions #CleanEnergy #CircularEconomy
