Scheme to Promote Critical Mineral Recycling

The Scheme to Promote Critical Mineral Recycling aims to reduce import dependence, ensure resource security, and support India’s green energy transition through sustainable reuse of vital minerals.

Context: Cabinet approves incentive scheme to promote Critical Mineral Recycling as a part of the National Critical Mineral Mission (NCMM).

Scheme to Promote Critical Mineral Recycling

Objective: Promote recycling of critical minerals (like lithium, cobalt, and rare earths) to ensure supply chain sustainability, given the long gestation of new mining projects.
Financial Outlay: ₹1,500 crore.
Tenure: 6 years (FY 2025-26 to FY 2030-31).

Key Features of the Recycling Incentive Scheme

Eligible Feedstock: E-waste, Lithium-Ion Battery (LIB) scrap, Catalytic converters and other end-of-life vehicle scraps.
Beneficiaries: Both large recyclers and small/new entities (including start-ups).
- One-third of the outlay is earmarked for small entities.
Incentive Mechanism:
- Capex subsidy: 20% on plant & machinery for timely production.
- Opex subsidy on incremental sales: 40% (Year 2) and 60% (Year 5).
- Incentive ceilings: ₹50 crore for large, ₹25 crore for small entities.

National Critical Mineral Mission (NCMM)

Period: FY 2024-25 to FY 2030-31.
Aim: Secure India’s supply of critical minerals from domestic and foreign sources.
Scope: Entire value chain → exploration → mining → processing → beneficiation → recovery from end-of-life products.