Cabinet Clears ₹1,500 Crore Scheme for Critical Mineral Recycling
On 3rd September 2025, The Union Cabinet has approved a ₹1,500 crore Incentive Scheme to promote critical mineral recycling in India. The move will help recover key minerals from battery waste and e-waste, reducing import dependence and strengthening the clean energy supply chain.
Why This Matters
- China factor: China currently controls 60–70% of global processing of minerals like lithium, cobalt and rare earths. This gives Beijing an outsized influence on global supply.
- India’s strategic hedge: Recycling creates an indigenous supply source while new mines (which take years to develop) come online.
- Clean energy push: Critical minerals are essential for EV batteries, solar, electronics, and defence. This scheme supports India’s energy transition and industrial resilience.
Scheme Highlights
- Tenure: 6 years (FY 2025–26 to FY 2030–31).
- Feedstock: e-waste, lithium-ion battery scrap, catalytic converters, and other end-of-life vehicle parts.
- Support for startups: One-third of funds earmarked for new/small recyclers.
- Incentives:
- 20% Capex subsidy on plant & machinery.
- Opex subsidy on incremental sales: 40% in Year 2, 60% in Year 5.
- Incentives capped at ₹50 crore (large firms), ₹25 crore (small firms).
Table – Incentives & Limits
| Category | Capex Subsidy | Opex Subsidy | Incentive Ceiling |
|---|---|---|---|
| Large Entities | 20% on plant & machinery | 40% (Year 2) + 60% (Year 5) of incremental sales | ₹50 crore (max), with Opex cap ₹10 crore |
| Small Entities / Startups | 20% on plant & machinery | 40% (Year 2) + 60% (Year 5) of incremental sales | ₹25 crore (max), with Opex cap ₹5 crore |
Expected Outcomes
- 270 kilo ton annual recycling capacity.
- 40 kilo ton critical mineral production.
- ~₹8,000 crore investment inflow.
- ~70,000 direct and indirect jobs.
Indiagraphs Insight: With the global race for critical minerals heating up, India’s policy is not just about waste management, it is a geopolitical step to reduce reliance on China, secure supply chains, and position India as a clean energy manufacturing hub
Source: PIB, Ministry of Mines
