Cabinet clears Rs 1,500 crore scheme for critical mineral recycling

The Union Cabinet led by PM Narendra Modi, has approved a ₹1,500 crore scheme to boost recycling of critical minerals from secondary sources. 

Part of the National Critical Mineral Mission (NCMM), the move aims to build domestic capacity and strengthen supply chains, with recycling seen as a quicker solution than new mines or foreign deals.

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The scheme, running from FY2025-26 to FY2030-31, aims to boost recycling of e-waste, lithium-ion battery scrap, and other scrap like catalytic converters from end-of-life vehicles. It targets both large recyclers and smaller firms, including startups, with one third of the total budget reserved for smaller entities. The focus is on recyclers extracting critical minerals not just producing black mass.

The scheme, running from FY2025-26 to FY2030-31, aims to boost recycling of ewaste, lithium-ion battery scrap, and other scrap like catalytic converters from end of life vehicles. It targets both large recyclers and smaller firms, including startups with one-third of the total budget reserved for smaller entities. The focus is on recyclers extracting critical minerals not just producing black mass.

The Centre announced that applicants can get a 40% opex subsidy in the second year and 60% in the fifth year, based on meeting sales targets. Incentives are capped at ₹50 Cr for large entities and ₹25 Cr for small ones, with limits on opex subsidies of ₹10 Cr and ₹5 Cr.

Part of the ₹16,300 Cr National Critical Mineral Mission (NCMM), launched in January, the scheme targets 24 minerals vital for India’s clean energy, EV, electronics and advanced manufacturing needs. It also addresses supply chain risks heightened by China’s export restrictions and the Russia-Ukraine war.

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