Cabinet approves Rs 1,500 crore incentive scheme to promote recycling of critical minerals

This scheme is part of the National Critical Mineral Mission (NCMM), which is aimed at building the domestic capacity and supply chain resilience in critical minerals.

Talking about the Cabinet decision, Union Minister for Heavy Industries and Steel HD Kumaraswamy said, "The Union Cabinet under the leadership of Hon’ble Prime Minister Shri Narendra Modi ji has approved a landmark Rs 1,500 crore Incentive Scheme to promote Critical Mineral Recycling in the country. This decision is a crucial step towards strengthening India’s supply chain resilience, advancing sustainability, and achieving self-reliance in critical minerals. This Scheme, under the ambit of the National Critical Mineral Mission (NCMM), will support the recycling of e-waste, lithium-ion battery scrap, and catalytic converters from end-of-life vehicles. It will provide targeted incentives to both large recyclers and emerging start-ups, fostering innovation, modernization, and capacity expansion across the recycling ecosystem."

Kumaraswamy further said, "Aligned with the Ministry of Heavy Industries’ commitment to green mobility and clean energy, this initiative will provide sustainable supply chains for lithium-ion batteries and other critical minerals that are essential for electric vehicles, advanced storage solutions, and emerging technologies. It complements our broader push for EV adoption, PLI schemes, and investments in future-ready industries, creating strong linkages between recycling, resource efficiency, and the green mobility revolution. The Scheme provides Capex and Opex subsidies to accelerate industry participation, with a special focus on start-ups and smaller players. By 2030-31, it is expected to create 270 kilo tonnes of recycling capacity annually, yielding nearly 40 kilo tonnes of critical minerals, catalyzing investments of around ₹8,000 crore, and generating close to 70,000 direct and indirect jobs."

"This visionary initiative demonstrates the government’s focus on turning waste into wealth, strengthening India’s circular economy, and building a resilient foundation for next-generation industries. I commend the Hon’ble Prime Minister for this forward-looking decision that will not only accelerate clean energy adoption but also take India closer to its Atmanirbhar Bharat and net-zero goals," the minister added.

Earlier, the government approved a Rs 16,300-crore National Critical Mineral Mission, with a total outlay of Rs 34,300 crore spread over seven years, aiming to achieve self-reliance and accelerate India's journey towards green energy transition.

Public sector enterprises are expected to contribute Rs 18,000 crore to the mission.

Critical minerals such as copper, lithium, nickel, cobalt and rare earth elements are essential raw materials required to fuel the growth of rapidly growing clean energy technologies.

The major objectives of this mission are to increase exploration, reduce import dependence, acquire mineral blocks overseas, develop technologies for processing of critical minerals and recycle minerals.