Centre launches Rs 1,500 crore incentive scheme to boost critical mineral recycling

The purpose of the scheme is to boost India’s supply security of critical minerals, encourage innovation, support startups, and position the country as a hub for sustainable recycling technologies.

New Delhi : The Ministry of Mines has announced a new Critical Mineral Recycling Incentive Scheme worth ₹1,500 crore to recover important minerals like lithium, cobalt, nickel, rare earth elements, and platinum group metals from waste such as e-waste, used lithium-ion batteries, magnets, catalytic converters, and alloy scraps. Launched on September 8, 2025, under the National Critical Minerals Mission, this scheme will support recyclers who recover these valuable minerals. Recyclers are divided into two groups—Group A for large companies with revenue of at least ₹200 crore, and Group B for smaller companies or startups. Group A must invest at least ₹100 crore and set up facilities with 10,000 tonnes per year capacity, while Group B needs to invest ₹25 crore and have 5,000 tonnes capacity. Out of the total fund, ₹700 crore is for battery recycling, ₹650 crore for e-waste, and ₹135 crore for other waste streams.

The scheme offers two types of financial support—capital expenditure (Capex) subsidies and operational expenditure (Opex) incentives. Capex support will be 14–20%, depending on how fast production starts after getting environmental clearance. Opex support will depend on sales growth, with 40% given in the second year and 60% in the fifth year. To qualify, Group A companies must achieve sales of ₹60 crore by year two and ₹150 crore by year five, while Group B must reach ₹30 crore and ₹75 crore in the same period. Incentives are capped at ₹50 crore for Group A and ₹25 crore for Group B. The main aim of this scheme is to strengthen India’s supply of critical minerals, promote innovation, support startups, reduce import dependence, and create a circular economy by recycling valuable materials for clean energy, electric vehicles, and electronics.