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New Delhi, Oct 25 (KNN) The Union Cabinet, on 3 September 2025, approved a Rs 1,500 crore incentive scheme to promote critical mineral recycling under the National Critical Mineral Mission. Following the Cabinet’s approval, the Ministry of Mines issued detailed guidelines for the scheme on 2 October 2025 after extensive stakeholder consultations. The application process was launched the same day. Under the Scheme, eligible feedstock includes e-waste, spent lithium-ion batteries (LIBs), and other high-value scrap such as catalytic converters from end-of-life vehicles. Current estimates suggest that India generates around 1.75 million tonnes of e-waste and 60 kilotonnes of spent LIBs annually. The removal of customs duty on LIB scrap, announced in the Union Budget 2025–26, is expected to further facilitate imports and strengthen domestic recycling capacity. To ensure steady feedstock supply, the government is formalising collection systems under the Extended Producer Responsibility (EPR) framework for e-waste and battery waste management. These rules mandate the extraction of specified end-products, though the country’s present capacity for processing black mass or powder remains limited. Much of this material is currently exported without extracting valuable embedded minerals. The new incentive scheme targets recyclers engaged in actual mineral recovery, rather than those involved solely in black mass production, thereby encouraging the participation of upstream entities such as dismantlers, crushers, and shredders. At present, only a handful of players in India are engaged in end-to-end (R4) recycling, converting battery scrap directly into refined metals. While the Scheme supports expansion by existing recyclers, it also seeks to attract new entrants, widening industry participation. To ensure equitable distribution, incentives are capped at Rs 50 crore for large recyclers and Rs 25 crore for small recyclers. The initiative is expected to accelerate domestic capacity-building in advanced recycling processes such as hydrometallurgy, with IITs, CSIR laboratories, and other R&D institutions already developing and demonstrating indigenous technologies in metal extraction, purification, and recycling. According to the Ministry of Mines, the Scheme is part of a broader effort to build robust recycling infrastructure, reduce import dependence, and ensure the efficient utilisation of e-waste and battery waste within India.
