Why in news?
India is expanding its renewable energy and electric vehicle industries, which depend on critical minerals such as lithium, cobalt and rare earth elements. In October 2025 the government announced a ₹1,500 crore scheme to encourage recycling of these minerals from used batteries, electronic waste and industrial scrap.
Objectives of the scheme
The National Critical Minerals Mission aims to reduce import dependence, secure supply chains and promote a circular economy. By recovering valuable metals from waste, India can lower costs, create green jobs and reduce environmental pollution.
How the scheme works
- Eligibility categories: Large recyclers investing at least ₹100 crore can apply under Group A. They must build facilities capable of processing over 10,000 tonnes of waste annually. Start‑ups and smaller firms investing ₹25 crore qualify under Group B with a minimum capacity of 5,000 tonnes.
- Incentives: The government provides capital subsidies of 14–20 percent on plant and machinery. Operational support is linked to sales of recovered metals. Separate earmarked funds are available for recycling lithium‑ion batteries, electronic waste and other sources.
- Feedstock sources: Waste streams include spent batteries from electric vehicles and electronics, catalytic converters, end‑of‑life solar panels and industrial scrap.
- Environmental compliance: Recyclers must follow strict safety and pollution control norms to prevent secondary contamination.
Significance
- The scheme supports domestic manufacturing of batteries, magnets and other components for renewable energy and defence industries.
- Recovering metals reduces the need for new mining, conserving natural habitats and lowering greenhouse gas emissions.
- By developing expertise in recycling, India can export technology and services to other countries, becoming a hub for resource recovery.