India Approves Rs. 1,500 Crore Incentive for Critical Mineral Recycling

According to an official statement from the Government of India, the Union Cabinet has approved a six-year incentive program worth Rs. 1,500 crore to accelerate the recycling of critical minerals from secondary sources, including e-waste and spent lithium-ion batteries. The decision was taken at a Cabinet meeting chaired by Prime Minister Narendra Modi.

The initiative, part of the National Critical Mineral Mission (NCMM), is designed to provide short-term supply chain stability through recycling while India builds long-term mining and exploration capacity. The scheme will operate from FY 2025-26 to FY 2030-31, with one-third of the budget earmarked for startups and smaller recyclers—an effort to balance support for established companies with encouragement for new entrants.

According to the official release, beneficiaries will receive:

Capital support: A 20% subsidy on eligible machinery and utilities, linked to production timelines.

Operational support: Subsidies on incremental sales achieved between FY 2026-27 and FY 2030-31, capped at Rs. 50 crore for large entities and Rs. 25 crore for smaller ones.

The program is reported to create at least 270 kilotons of annual recycling capacity, yielding around 40 kilotons of critical minerals each year. In addition, it is projected to attract approximately Rs. 8,000 crore in private investment and generate nearly 70,000 direct and indirect jobs.

In a message shared on X, Prime Minister Narendra Modi stated that the scheme would boost India’s recycling capacity, encourage fresh investment, and generate new employment opportunities.

Industry observers note that critical minerals such as lithium, cobalt, and rare earth elements are essential for clean energy technologies, electric vehicles, and advanced electronics. According to a report by the International Energy Agency (IEA), demand for these minerals is expected to rise sharply over the next decade, intensifying global competition. Similar incentive schemes have already been introduced in the U.S. and European Union, where recycling and stockpiling are increasingly seen as matters of strategic security.

Analysts suggest that India’s scheme could not only reduce waste but also position the country as an emerging hub for mineral recycling, attracting foreign technology partnerships and investments while aligning with its broader energy transition goals.

Source: PM India