India Launches ₹1,500 Crore Critical Mineral Recycling Scheme

The Government of India has introduced a ₹1,500 crore incentive scheme to boost critical mineral recycling. This move aims to reduce the country’s dependence on imports and build self-reliance in the critical minerals sector. The scheme is part of the National Critical Mineral Mission and was approved by the Union Cabinet in September 2025. It focuses on developing recycling capacity from secondary sources such as e-waste and spent lithium-ion batteries.

Scheme Objectives and Scope

The scheme targets the extraction and production of critical minerals from recycled materials. It promotes recycling of e-waste, spent lithium-ion batteries, and other scrap. Both large and small recyclers, including start-ups, are eligible. Support extends to new units, capacity expansion, modernisation, and diversification of existing units. The scheme excludes incentives for black mass production alone, focusing on actual mineral extraction processes.

Guidelines and Application Process

Detailed guidelines have been issued after consultations with industry and stakeholders. These outline incentive allocation, application, evaluation, disbursement, and performance monitoring. Applications opened on 2 October 2025 and will close by 1 April 2026. The Ministry of Mines hosts the guidelines and application portal online. The scheme ensures transparency and institutional oversight to maintain efficiency.

Incentive Structure and Caps

Incentives cover capital expenditure (Capex) and operational expenditure (Opex) subsidies. Large entities can receive up to ₹50 crore in total, with a maximum Opex subsidy of ₹10 crore. Small entities have a total ceiling of ₹25 crore and an Opex cap of ₹5 crore. This structure aims to encourage wider participation and equitable distribution of benefits.

Expected Outcomes and Impact

The scheme aims to develop 270 kilo tonnes of annual recycling capacity. This is projected to yield 40 kilo tonnes of critical minerals yearly. It is expected to attract investments worth around ₹8,000 crore. The initiative will create approximately 70,000 direct and indirect jobs. This will strengthen India’s strategic mineral supply chain and support sustainable industrial growth.

Significance for National Mineral Security

India’s dependence on imports for critical minerals poses economic and security risks. Recycling reduces reliance on foreign sources and mitigates supply disruptions. It promotes circular economy principles by recovering valuable materials from waste. The scheme aligns with global trends towards sustainable resource management and technological innovation.