The government has stepped up its efforts to recover critical minerals essential for clean energy technologies and advanced manufacturing. The ministry of mines unveiled a ₹1,500 crore incentive scheme to support companies engaged in extracting lithium, cobalt, nickel, and other valuable metals from discarded electronics and used batteries. The move aims to reduce import dependence, strengthen domestic recycling capacity, and formalize India’s rapidly growing e-waste ecosystem.
Part of the National Critical Mineral Mission
According to the ministry, the initiative falls under the National Critical Mineral Mission. The ministry released detailed guidelines on October 2, 2025, following consultations with industry stakeholders. Applications for the incentive program opened the same day and have already drawn strong interest from recyclers and technology companies, reflecting growing confidence in India’s emerging mineral recovery sector.
Expanding E-Waste Recycling Capacity
India currently produces about 1.75 million tons of electronic waste and nearly 60 kilotons of spent lithium-ion batteries (LIBs) every year. The removal of customs duties on imported LIB scrap in the 2025–26 Union Budget is expected to further expand recycling opportunities in the next few years. Under the new framework, eligible feedstock includes e-waste, used LIBs, and catalytic converters from end-of-life vehicles. Crucially, the scheme incentivizes recyclers to carry out actual mineral extraction rather than merely exporting “black mass” — the powder residue containing valuable metals. This marks a decisive shift toward value addition within India.
Formalizing India’s Recycling Chain
The initiative also seeks to integrate informal recyclers into the formal economy. Feedstock collection will be enhanced through the Extended Producer Responsibility (EPR) mechanism, which requires manufacturers to collect and recycle their electronic and battery waste responsibly. By encouraging informal dismantlers, crushers, and shredders to collaborate with licensed recyclers, the government aims to expand domestic processing capacity and reduce unsafe recycling practices, particularly in the urban informal sector.
Incentives and Technology Promotion
To ensure broad participation, the ministry has set an incentive cap of ₹50 crore for large recyclers and ₹25 crore for smaller enterprises. The program prioritizes companies that adopt scientifically proven recycling technologies, such as hydrometallurgy, which uses aqueous solutions to separate and purify metals from waste.
The government is also working with research institutions like the IITs and CSIR laboratories that have developed indigenous metal recovery methods. These institutions will help provide technical training and capacity-building in mineral processing to equip India’s workforce with advanced recycling skills.
Advancing Resource Security and Circular Economy Goals
The ministry of mines underscored that the initiative supports India’s broader goal of building a circular economy for critical minerals, essential for electric vehicles, renewable energy systems, and high-tech electronics. By promoting domestic mineral recovery, the government aims to cut dependence on foreign imports, ensure resource security, and contribute to India’s net-zero and sustainability targets. As reported by timesnownews.com, the landmark initiative marks a strategic step toward self-reliance in critical mineral supply chains, positioning India as a key player in the global clean energy transition.
