India Finalizes ₹1,500 Crore Incentive Scheme for Critical Minerals Recycling

Image Source: KNN India

India is set to launch a ₹1,500 crore incentive scheme aimed at boosting the recycling of 24 critical minerals, including lithium, cobalt, and rare earth elements. The initiative, which is in its final approval stages, is expected to strengthen India’s clean energy transition and reduce dependency on imports.

Government Initiative:

The scheme will provide capital subsidies and production-linked incentives (PLIs) to encourage private sector investment in mineral recycling.
The government has earmarked ₹15 billion for the recycling of these minerals, as part of a ₹163 billion outlay for the critical minerals sector.

Strategic Goals:

India aims to expand lithium-ion battery recycling capacity from 75,000 metric tons annually, reducing reliance on foreign imports.
The initiative aligns with India’s net-zero emissions target by 2070, supporting EV production and clean energy expansion.

Policy Support:

The government has removed customs duties on waste and scrap of key minerals, including lead, zinc, cobalt powder, and lithium-ion batteries, to lower costs for recyclers.
The National Critical Mineral Mission is actively working to secure domestic and international mineral resources.

Market Impact:

The policy is expected to boost India’s position in the global critical minerals supply chain, attracting foreign and domestic investments.
Analysts predict rapid growth in India’s EV sector, with sales expected to double in 2025, driven by new launches and policy incentives.

Strategic Outlook:

India’s critical minerals recycling scheme is a major step toward resource self-reliance, ensuring sustainability, industrial growth, and energy security. The policy is expected to accelerate India’s transition to a circular economy, reinforcing its commitment to green technologies.

Source: Economic Times, Angel One, Vajiram & Ravi.