Cabinet approves ₹1,500 cr initiative for advancing critical mineral recycling

What is it?

A government initiative valued at ₹1,500 crore aims to encourage the recycling of e-waste and battery waste for the recovery of essential minerals.

It will act as a temporary fix until mining and exploration activities start producing outcomes.

Inaugurated under: National Critical Mineral Mission (NCMM).

Department: Department of Mines.

Objective:

To enhance the resilience of India's supply chain for essential minerals.

To establish a local recycling system for obtaining raw materials essential for clean energy, electric vehicles, and electronics sectors.

Characteristics:

Timeframe: Six years (2025-26 to 2030-31).

Approved feedstock: electronic waste, lithium-ion battery remnants, catalytic converters from decommissioned vehicles.

Beneficiaries: Large recyclers and startups; one-third of funding allocated for small or new recyclers.

Motivations:

20% funding support for equipment, machinery, and facilities.

Subsidy for operating expenses tied to additional sales compared to the baseline year.

Disbursement of the subsidy in two installments: 40% (second year) + 60% (fifth year).

Cap:

Big units – ₹50 crore (₹10 crore for operational expenses).

Minor units – ₹25 crore (₹5 crore for operational expenses).

Assistance for new units along with the growth, upgrading, and variety of current ones.

Importance:

Anticipated to develop 270 thousand tons of yearly recycling capability.

Produce approximately 40 thousand tons of essential minerals each year.

Draw in ₹8,000 crore funding.

Create approximately 70,000 positions (both direct and indirect).