RECYCLING OF CRITICAL MINERALS
WHY IN NEWS
- On 3rd September 2025, the Union Cabinet approved a ₹1,500 crore incentive scheme to promote recycling of critical minerals from battery waste and e-waste.
- The scheme is part of the National Critical Mineral Mission (NCMM) and aims to reduce India’s dependence on imports by developing domestic recycling capacity for key minerals.
WHAT IS E WASTE RECYCLING?
E-waste recycling is the process of recovering valuable materials and safely disposing of hazardous components from discarded electronic devices like:
- Mobile phones
- Computers
- Televisions
- Refrigerators
- Batteries
- LED lights
These devices contain precious metals, rare earth elements, and toxic substances.
WHAT ARE CRITICAL MINERALS?
Critical minerals are strategic raw materials essential for:
- Modern electronics
- Renewable energy (solar panels, wind turbines)
- Batteries (especially for EVs)
- Defence technologies
They include:
- Lithium
- Cobalt
- Nickel
- Rare Earth Elements (REEs)
- Tantalum
- Gold, Silver, Palladium
- Indium, Tellurium, etc.
India currently imports most of these minerals, making them economically and geopolitically critical.
E WASTE RECYCLING TO EXTRACT MINERALS
When e-waste is recycled:
- Devices are collected and dismantled.
- Components are shredded or smelted.
- Metals and critical minerals are extracted through:
- Hydrometallurgy (using acids)
- Pyrometallurgy (using heat)
- Bioleaching (using bacteria)
- These processes help recover valuable materials and reduce mining dependency.
CRITICAL MINERAL RECYCLING INCENTIVE SCHEME (2025)
| Feature | Details |
| Name | Critical Mineral Recycling Incentive Scheme |
| Approved by | Union Cabinet (Chaired by PM Narendra Modi) |
| Date of Approval | 3rd September 2025 |
| Scheme Outlay | ₹1,500 crore |
| Duration | 6 years (FY 2025–26 to FY 2030–31) |
| Under | National Critical Mineral Mission (NCMM) |
| Target | Develop recycling capacity & extract critical minerals from secondary sources |
ELIGIBLE FEEDSTOCK (SECONDARY SOURCES)
- E-waste
- Lithium-ion battery (LIB) scrap
- Other scrap: e.g., catalytic converters from end-of-life vehicles
ELIGIBLE BENEFICIARIES :
- Large, established recyclers
- Small recyclers and start-ups
1/3rd of total scheme outlay reserved for small/new recyclers
COVERAGE & APPLICATION :
- Applicable to:
- New units
- Expansion / modernization / diversification of existing units
- Incentives available only to entities engaged in mineral extraction, not just black mass production
SCHEME INCENTIVES
1. Capital Expenditure (Capex) Subsidy
- 20% subsidy on eligible:
- Plant & machinery
- Equipment
- Associated utilities
- Reduced subsidy if production starts beyond the specified time
2. Operating Expenditure (Opex) Subsidy
- Applicable from FY 2026–27 to FY 2030–31
- Linked to incremental sales over base year (FY 2025–26)
- Disbursed in 2 stages:
- 40% in 2nd year
- 60% in 5th year
SUBSIDY CEILING
| Entity Type | Capex + Opex Ceiling | Opex Ceiling Only |
| Large Entities | ₹50 crore | ₹10 crore |
| Small Entities | ₹25 crore | ₹5 crore |
EXPECTED OUTCOME
| Parameter | Expected Impact |
| Recycling Capacity | 270 Kilo Tonnes (KT) annually |
| Critical Mineral Output | 40 KT annually |
| Total Investment | ~₹8,000 crore |
| Jobs Generated | ~70,000 (direct & indirect) |
CONSULTATIVE PROCESS
- Several rounds of stakeholder consultations held:
- Industry meeting
- Seminar sessions
- Inter-ministerial reviews
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