New Delhi: India unveiled a Rs. 1,500 crore incentive scheme to expand the recycling of e-waste and battery scrap for critical minerals like lithium and cobalt, addressing the nation’s heavy reliance on imports for clean energy technologies, today. Approved by the Union Cabinet, the initiative targets a domestic supply boost for electric vehicles and renewables, but faces hurdles in scaling infrastructure and technology.
The term “critical minerals” refers to materials like lithium, cobalt, and rare earths, essential for Electric Vehicle (EV) batteries, wind turbines, and solar panels, yet scarce in domestic supply, with India importing 90% of its needs, per 2024 Ministry of Mines data. The scheme, under the National Critical Mineral Mission (NCMM), focuses on extracting these minerals from secondary sources—e-waste, lithium-ion battery (LIB) scrap, and catalytic converters from end-of-life vehicles—to reduce dependence on mining and foreign imports, which face long gestation periods. “Recycling offers a faster path to secure critical minerals for our industries,” a Ministry of Mines official said.
Spanning Financial Year(FY) 2025-26 to FY 2030-31, the scheme provides a 20% capital expenditure (capex) subsidy on plant, machinery, and utilities for recyclers meeting production timelines, with reduced subsidies for delays. An operational expenditure (opex) subsidy supports incremental sales over FY 2025-26, offering 40% in the second year and 60% in the fifth year, tied to sales thresholds. To encourage diverse participation, incentives are capped at Rs. 50 crore for large entities and Rs. 25 crore for small ones, with opex subsidies limited to Rs. 10 crore and Rs. 5 crore, respectively. One-third of the Rs. 1,500 crore outlay is reserved for startups and small recyclers.
The scheme targets 270 kilotonnes of annual recycling capacity, producing 40 kilotonnes of critical minerals yearly, with an estimated Rs. 8,000 crore in investments and 70,000 direct and indirect jobs, according to government projections. It focuses on the recycling value chain for mineral extraction, excluding processes like black mass production. “This initiative could transform how we source minerals, but success depends on robust technology and waste collection,” said Dr. Rakesh Gupta, an industry analyst involved in pre-scheme consultations.
India’s recycling sector faces challenges, with only 5% of e-waste formally recycled in 2024, per CPCB data. Extracting high-purity minerals requires advanced technologies, and improper e-waste handling risks environmental damage. The scheme follows consultations with industry stakeholders, but scaling urban waste collection and ensuring small recyclers compete with larger firms remain hurdles. The initiative aligns with India’s net-zero goal by 2070, as global mineral demand is projected to triple by 2030, per International Energy Agency estimates.
– global bihari bureau
