Indian Economy News

A strong push for critical mineral extraction from recycling

The Union Cabinet approved a Rs. 1,500 crore (US$ 171 million) Incentive Scheme for critical mineral recycling on September 3, 2025, as part of the National Critical Mineral Mission. The scheme aims to ensure near-term supply chain sustainability by promoting the formal recycling of key waste streams such as e-waste, spent lithium-ion batteries (LIBs), and other scrap, including catalytic converters from end-of-life vehicles. The Ministry of Mines issued detailed guidelines on October 2, 2025, and the application process was launched the same day. Stakeholders have welcomed the swift rollout and are actively engaging with the Ministry. Annual estimates indicate India generates 1.75 million tonnes of e-waste and around 60 kilo tonnes of spent LIBs, with availability expected to grow significantly over the next four to five years. Customs duty exemptions on LIB scrap, announced in the Union Budget 2025-26, are expected to facilitate imports further.
The scheme incentivises actual extraction of critical minerals rather than only black mass production, encouraging participation from upstream entities such as dismantlers, crushers, and shredders. Total incentives are capped at Rs. 50 crore (US$ 5.7 million) for large recyclers and Rs. 25 crore (US$ 2.8 million) for small recyclers, aiming to broaden beneficiary participation beyond the few players currently capable of end-to-end battery scrap recycling (R4). The scheme leverages proven indigenous technologies in hydrometallurgy and metal extraction, supported by premier institutes like Indian Institutes of Technologies (IITs) and Council of Scientific & Industrial Research (CSIR). Beneficiaries can access skill development and training through institutional tie-ups. Through this initiative, the Ministry of Mines aims to strengthen India’s recycling capacity, integrate e-waste into a formal system, and recover critical minerals efficiently to support domestic supply chains.

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