Cabinet Approves ₹1,500 Crore Incentive Scheme for Critical Mineral Recycling

New Delhi, September 3: The Union Cabinet has approved a ₹1,500 crore Incentive Scheme to develop recycling capacity in India for the separation and production of critical minerals from secondary sources.

Part of National Critical Mineral Mission

The scheme is aligned with the National Critical Mineral Mission (NCMM), which focuses on strengthening domestic capacity and ensuring supply chain resilience in critical minerals.

Need for Recycling

The government noted that the critical mineral value chain—covering exploration, auctions, mine operationalization, and foreign asset acquisition—has a long gestation period. To ensure supply chain sustainability in the near term, recycling of secondary sources has been identified as a prudent alternative.

Scheme Duration

The scheme will run for six years, from FY 2025-26 to FY 2030-31, with financial incentives to boost recycling infrastructure.

Eligible Feedstock

Recycling will target:

• E-waste
• Lithium-Ion Battery (LIB) scrap
• Other scrap sources such as catalytic converters from end-of-life vehicles