Govt clears Rs 1.5K cr incentive scheme to promote critical minerals’ recycling

new delhi: The Union Cabinet on Wednesday approved a Rs 1,500-crore incentive scheme to promote recycling of critical minerals in the country.

The scheme aims at developing recycling capacity in the country for the separation and production of critical minerals from secondary sources.

“The Union Cabinet...today approved a Rs 1,500 crore incentive scheme,” the Mines ministry said in a statement.

The scheme incentives are likely to develop at least 270 kilo tonnes of recycling capacity every year resulting in around 40 kilo tonnes annual critical mineral production, resulting in about Rs 8,000 crore of investment and job creation--both direct and indirect-- of close to 70,000.

This scheme is part of the National Critical Mineral Mission which is aimed at building the domestic capacity of and supply chain resilience in critical minerals.

The government has approved a Rs 16,300-crore National Critical Mineral Mission, with a total outlay of Rs 34,300 crore spread over seven years, aiming to achieve self-reliance and accelerate India’s journey towards green energy transition.

Critical minerals such as copper, lithium, nickel, cobalt and rare earth elements are essential raw materials required to fuel the growth of rapidly growing clean energy technologies.

According to the statement, the scheme has a tenure of six years from FY’26 to FY’31 and will provide incentives for the recycling value chain which is involved in actual extraction of critical minerals, and not the value chain involved in only black mass production.

“Eligible feedstock is e-waste, Lithium Ion Battery (LIB) scrap, and scrap other than e-waste & LIB scrap e.g. catalytic convertors in end-of-life vehicles,” it said.

The scheme will be applicable to investments in new units as well as expansion of capacity, modernisation and diversification of existing units, the statement said adding that expected beneficiaries will be both large, established recyclers, as well as small, new recyclers which includes start-ups, for whom one-third of the scheme outlay has been earmarked.

Reacting to the development, Prime Minister Narendra Modi said the scheme will boost capacities to recycle battery waste and e-waste, promote investment and encourage job creation.

PM Modi said, “This decision by the Union Cabinet pertaining to an incentive scheme to promote critical mineral recycling will boost capacities to recycle battery waste and e-waste, promote investment and encourage job creation.”