The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved a Rs.1,500 crore incentive scheme to strengthen India’s recycling capacity for critical minerals. The initiative, part of the National Critical Mineral Mission (NCMM), is designed to enhance domestic supply chain resilience by recovering valuable resources such as lithium, cobalt, and rare earths from secondary sources like e-waste and used lithium-ion batteries.
The scheme will run for six years, from FY 2025-26 to FY 2030-31, and is expected to catalyze the development of at least 270 kilotonnes of annual recycling capacity. This will translate into approximately 40 kilotonnes of critical mineral production each year, attract an estimated Rs.8,000 crore in investment, and generate nearly 70,000 direct and indirect jobs.
Under the scheme, both established and emerging recyclers, including startups, will benefit. One-third of the outlay has been earmarked specifically for small players. Incentives include a 20% capital expenditure (Capex) subsidy on plant, machinery, and associated utilities, as well as operational expenditure (Opex) subsidies linked to incremental sales. The scheme also caps incentives at Rs.50 crore for large entities and Rs.25 crore for smaller recyclers, ensuring wider participation.
Highlighting its significance, Mr. Shubham Vishvakarma, Founder and Chief of Process Engineering at Metastable Materials, said:
“The cabinet’s approval of the Rs.1,500 crore incentive scheme is indeed a big push towards building and strengthening a circular economy for the critical minerals industry. The focus on recycling of lithium-ion batteries and e-waste indicates a clear commitment to securing resources for a sustainable future and recognises recyclers and critical metal refiners like us as partners in the national strategy. For innovators in this space, this scheme by the Government of India provides a clear roadmap to scale, modernize, and diversify capacity while also creating green jobs and reducing India’s dependence on imports.”
Officials noted that the scheme targets the actual extraction of critical minerals rather than only black mass production, ensuring a stronger value chain for India’s green energy transition.