India has launched a ₹1,500 crore (about $180 million) critical mineral recycling incentive scheme to boost domestic recovery of key materials needed for electric vehicles and clean energy technologies.
This initiative is part of the National Critical Mineral Mission, aiming to reduce the country's heavy reliance on imports.
The scheme opened for applications on October 2, 2025, and will run for six months. It targets both established recycling companies and startups that can extract critical minerals from e-waste, spent lithium-ion batteries, and industrial scrap, fostering innovation in recycling technologies.
What is the goal of India’s ₹1,500 crore recycling scheme?
The primary goal is to develop at least 270 kilotonnes of annual processing capacity, equivalent to approximately 40 kilotonnes of critical mineral production annually.
The government projects that the program will attract ₹8,000 crore in private investment and generate roughly 70,000 direct and indirect jobs over time.
This aligns with India's broader goal of strengthening mineral supply chains and achieving net-zero emissions by 2070, particularly by locally sourcing materials essential for electric vehicle batteries and renewable energy technologies.
Did you know?
India currently imports nearly all of its lithium, cobalt, and nickel, creating supply chain risks.
Which minerals and wastes does the scheme target?
The scheme focuses on lithium, cobalt, nickel, and other critical minerals, with a minimum recovery yield of at least 80% and a purity of 99% which India currently imports nearly entirely, mainly from China.
Recycling operations must achieve high standards, with a minimum recovery yield of at least 80% and a purity of 99%.
Eligible waste streams include electronic waste, spent lithium-ion batteries, and industrial scrap.
This approach prioritizes advanced chemical recycling over fundamental dismantling, focusing on technologies that efficiently recover materials for reuse in high-tech manufacturing.
How does the scheme support startups and established recyclers?
Large firms can avail themselves of incentives of up to ₹50 crore, while smaller companies and startups can receive incentives of up to ₹25 crore. One-third of the total scheme budget is reserved for smaller players to promote inclusive growth and innovation.
The government offers a 20% capital subsidy for plant and machinery costs, along with phased operating subsidies designed to sustain long-term operations 40% in the second year and 60% in the fifth year. This ensures that recycling efforts remain viable beyond initial setup.
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What impact will this have on India's mineral imports?
Industry experts estimate that efficient recycling under this initiative could reduce India's critical mineral imports by up to 30%. This decrease would markedly enhance supply chain resilience amid growing global demand for battery-grade minerals.
The current lithium-ion battery recycling capacity stands at 75,000 metric tons per year, and the scheme aims to significantly expand this.
Reduced import dependence will not only cut costs but also insulate India from geopolitical risks in critical mineral supply chains.
How does this fit into India’s broader sustainability goals?
The recycling push complements India’s pan-India e-waste management drive launched simultaneously on October 2, 2025, as part of a broader cleanliness campaign.
Together, these steps support circular economy principles and reduce environmental harm from mining activities.
By fostering domestic critical mineral recycling, India moves closer to sustainable energy and industrial growth, aligning with its commitment to net-zero emissions by 2070.
The initiative represents a strategic investment in clean technology infrastructure and national resource security.
India’s ₹1,500 crore critical mineral recycling scheme is a bold step toward transforming waste into valuable resources while reducing dependence on imports.
The success of this initiative could accelerate India's clean energy transition and serve as a global model for sustainable resource management.
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