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Cabinet approves Rs 1,500 crore incentive scheme to promote recycling of critical minerals

by VARINDIA 2025-09-04

The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved a landmark ₹1,500 crore Incentive Scheme to promote critical mineral recycling in India. The initiative, part of the National Critical Mineral Mission (NCMM), aims to strengthen the domestic supply chain for rare earth elements, lithium-ion battery materials, and other critical minerals essential for green energy, electric vehicles (EVs), electronics, and renewable energy technologies.

The scheme will focus on recycling battery waste, e-waste, and catalytic converters from end-of-life vehicles to extract valuable minerals. Running from FY 2025-26 to FY 2030-31, it supports both large-scale companies and startups in the recycling and clean energy sector, with one-third of funds earmarked for small and emerging recyclers.

Key Highlights of the Scheme:

20% Capex subsidy on new plants, machinery, and utilities for critical mineral extraction.
Opex subsidies linked to incremental sales between FY 2026-27 and FY 2030-31.
Incentive cap of ₹50 crore for large entities and ₹25 crore for smaller firms.
Focus only on recycling and mineral extraction, not just black mass production.

Expected Outcomes:

Development of 270 kiloton annual recycling capacity.
Production of 40 kiloton of critical minerals annually.
₹8,000 crore investment inflow into India’s recycling and green energy ecosystem.
Creation of nearly 70,000 direct and indirect jobs.

This bold policy move positions India as a future leader in the global critical minerals supply chain, reducing dependency on imports, advancing circular economy goals, and supporting the country’s sustainability and energy security agenda.