The Union Cabinet on 3^rd September, 2025 had approved a ₹1,500 crore Incentive Scheme for critical mineral recycling. The schemes, which is a part of the National Critical Mineral Mission, aims to provide a prudent way to ensure supply chain sustainability in the near term. Subsequently, the Ministry of Mines on 2^nd October, 2025 issued the detailed Scheme guidelines after undertaking stakeholder consultations. The application process for the Incentive Scheme has started, having been rolled out on 2^nd October, 2025 itself. The stakeholders have appreciated the fast roll-out of the Scheme, and are actively engaged with the Ministry.

Eligible feedstock under the Scheme are e-waste, spent lithium ion batteries (LIBs), and other scrap such as catalytic convertors in end-of-life vehicles. As per some estimates, the annual generation of e-waste in the country is 1.75 million ton (mt), and of spent LIBs is about 60 kilo ton (kt). Customs duty elimination in tariff lines of LIB scrap implemented through Union Budget 2025-26 will facilitate imports. Over next 4-5 years, the availability of these waste products is going to increase manifold.

Feedstock availability is also being addressed through formalization of collection under the Extended Producer Responsibility (EPR) framework, and integration of waste into the recycling eco-system, supported by concerned government agencies. Under the EPR framework, E-waste and Battery waste management rules obligate extraction of specified end-products. Even so, the capacity to process black mass/ powder is limited in the country, due to which they are being exported without first extracting out the valuable critical minerals embedded therein. The Scheme will provide incentive for the recycling value chain which is involved in actual extraction of critical minerals, and not the value chain involved in only black mass production. This will help bring in more recyclers, especially upstream entities like dismantlers, crushers and shredders, into the formal system. Many private recycling companies are already running scrap collection systems efficiently.

There are very few players in the country which are into R4 recycling i.e. end-to-end battery scrap to metal extraction. While some of these players may take interest for their expansion plans, the Scheme as such envisages wider participation to enlist greater number of beneficiaries. The total incentive has, thus, been capped at ₹50 crores for big recyclers and ₹25 crores for small recyclers.

The Scheme will help in augmenting capacity in recycling using processes like hydrometallurgy. Proven technologies for end-to-end recycling are available in the country. Premier institutes like IITs, CSIR and other R&D laboratories have developed and demonstrated indigenous capabilities in metal extraction, recycling and purification. Some of these institutes are also imparting training in mineral processing, beneficiation and extractive metallurgy. Any skill requirement under the Scheme can be met through necessary institutional tie-up by the beneficiaries.

The Ministry of Mines has been actively engaging with the private sector so as to create sufficient capacity in the country to utilize e-waste fully and recover various critical minerals within a few years.

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Shuhaib T

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