New Delhi: The Union Cabinet has cleared a Rs 1,500 crore incentive scheme to promote the recycling of critical minerals, including rare earth elements, lithium, and other materials used in electric vehicles, batteries, electronics, and renewable energy technologies. The scheme, to be implemented from FY 2025-26 to FY 2030-31 under the National Critical Mineral Mission, is aimed at reducing import dependence and strengthening the domestic supply chain for sectors central to India’s energy transition.
The programme will focus on extracting valuable minerals from e-waste, end-of-life batteries, and catalytic converters, moving beyond black mass production to ensure usable mineral recovery. To encourage investment, the government will provide a 20 percent capital subsidy on new plants, machinery, and utilities, along with operational subsidies linked to incremental sales from FY 2026-27 to FY 2030-31. Incentives will be capped at Rs 50 crore for large entities and Rs 25 crore for smaller firms, with one-third of the total outlay reserved for startups and emerging recyclers.
The scheme is expected to develop 270 kiloton annual recycling capacity and produce 40 kilotons of critical minerals each year. It is also projected to attract nearly Rs 8,000 crore in private investment and create around 70,000 direct and indirect jobs. By incentivising large-scale and small players alike, the initiative seeks to build a circular economy framework in the mineral sector while advancing India’s long-term sustainability and energy security goals.
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