New Delhi: In a major push to secure India’s supply chain for critical minerals, the Centre has rolled out a ₹1,500-crore incentive scheme to promote recycling of e-waste, spent lithium-ion batteries (LIBs), and other scrap materials. The initiative, approved by the Union cabinet on September 3, and notified by the Ministry of Mines on October 2, forms a key part of the National Critical Mineral Mission.
The scheme seeks to build domestic capacity for end-to-end recycling — from waste collection to metal extraction — to ensure sustainable sourcing of vital minerals used in electronics, renewable energy, and electric vehicles. The ministry has already started accepting applications from recyclers, following stakeholder consultations and rapid rollout of detailed guidelines.
According to official estimates, India generates around 1.75 million tonnes of e-waste and 60 kilotonnes of spent lithium-ion batteries annually. These numbers are expected to rise sharply over the next five years. To support this growth, the Union Budget 2025-26 removed customs duty on LIB scrap imports, further boosting feedstock availability.
To integrate informal waste channels into the formal recycling system, the government is also leveraging the extended producer responsibility (EPR) framework. E-waste and battery waste management rules now mandate producers to ensure extraction of specified end-products. However, India’s current capacity for processing black mass — a semi-processed battery waste containing valuable minerals — remains limited, leading to exports without mineral recovery.
The new incentive scheme targets the actual extraction of critical minerals, encouraging investment in advanced recycling methods such as hydrometallurgy. Incentives are capped at ₹50 crore for large recyclers and ₹25 crore for small recyclers, ensuring wider participation across the recycling value chain.
The ministry emphasised that technological know-how already exists within the country. Institutions like IITs, CSIR laboratories and other research centres have developed indigenous solutions for metal extraction, recycling and purification, and are also training professionals in relevant fields.
By fostering collaboration between government, industry and academia, the ministry aims to build a self-reliant recycling ecosystem that can recover critical minerals domestically and reduce dependence on imports.
Officials said the scheme marks an important step toward achieving India’s circular economy goals and establishing a sustainable foundation for its clean energy transition.