In a significant step to strengthen India’s critical mineral supply chain, the Union Cabinet has approved a ₹1,500 crore incentive scheme to promote recycling from secondary sources. The scheme is designed to support the extraction of vital minerals from e-waste, lithium-ion battery scrap, and end-of-life vehicle parts, aligning with the objectives of the National Critical Mineral Mission (NCMM).
With a six-year rollout beginning FY 2025-26, the scheme provides both capital expenditure (Capex) and operational expenditure (Opex) subsidies to encourage new projects as well as the expansion and modernization of existing recycling units. Large recyclers will be eligible for incentives up to ₹50 crore, while small entities and start-ups can access up to ₹25 crore, ensuring inclusivity across the sector.
Government officials highlighted that the scheme is expected to develop 270 kilo tonnes of annual recycling capacity, producing around 40 kilo tonnes of critical minerals every year. This capacity building is projected to bring in nearly ₹8,000 crore in investment and create around 70,000 direct and indirect jobs.
The focus on recycling is being seen as a pragmatic short-term strategy while the domestic critical mineral mining ecosystem continues to evolve. By tapping secondary sources, India aims to reduce its import dependence, ensure supply chain resilience, and position itself as a key player in the global clean energy and electronics value chains.
Industry leaders have welcomed the move, particularly as demand for lithium, cobalt, and rare earths surges due to the rise of electric vehicles, renewable energy technologies, and advanced manufacturing. The scheme is expected to provide both economic and environmental benefits, driving India’s transition toward a circular economy.