The Union Cabinet has given a major push to critical mineral recycling. On 3rd September 2025, it approved an Rs 1,500 crore Incentive Scheme under the National Critical Mineral Mission.
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The scheme is designed to strengthen supply chain sustainability. It focuses on recycling e-waste, spent lithium-ion batteries (LIBs), and other scrap like catalytic converters from end-of-life vehicles.
The Ministry of Mines rolled out the detailed guidelines on 2nd October 2025 after consulting stakeholders. The application process also began on the same day. Industry experts welcomed the swift launch and have actively engaged with the Ministry.
Boosting Recycling Capacity
India generates around 1.75 million tons of e-waste and approximately 60 kilo tons of spent LIBs annually. The scheme will incentivize the recycling value chain that extracts critical minerals, not just black mass production.
Currently, much of the black mass is exported without recovering valuable minerals. By supporting dismantlers, crushers, and shredders, the scheme brings more recyclers into the formal system. Private recycling companies have already established efficient scrap collection systems.
R4 recycling, which covers end-to-end battery scrap to metal extraction, has a few players in India. The scheme aims to expand participation, with incentives capped at Rs 50 crore for large recyclers and Rs 25 crore for smaller ones.
Leveraging Technology and Skills
The scheme encourages the use of hydrometallurgy and other proven processes. Institutes like IITs, CSIR, and other R&D labs have developed indigenous capabilities in metal extraction, purification, and recycling. Training in mineral processing, beneficiation, and extractive metallurgy is also available to meet skill requirements.
The Ministry of Mines continues to engage with the private sector to fully utilize e-waste and recover critical minerals. Over the next 4-5 years, the availability of scrap and battery waste is expected to rise significantly, making India self-reliant in critical mineral supply.
The Rs 1,500 crore incentive scheme is a step toward sustainable recycling and critical mineral self-reliance. It strengthens the value chain, supports technology adoption, and opens new opportunities for Indian recyclers.
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