The Ministry of Mines has approved 58 companies as eligible under the ₹1,500 crore Incentive Scheme for Promotion of Critical Mineral Recycling, marking a major step toward building domestic capacity for recovering key minerals from waste streams. The scheme, notified in October 2025, is a core component of the National Critical Mineral Mission.
The selected companies, finalised in two phases (March and April 2026) through the JNARDDC, have collectively pledged around ₹5,000 crore in investment and an estimated 850 KTPA recycling capacity. The focus is on recovering minerals from lithium-ion batteries, e-waste, and industrial scrap, creating a secondary domestic supply source for materials critical to clean energy and advanced manufacturing.
Financial incentives under the scheme are linked to actual capacity creation and mineral output, signalling a shift toward performance-based support rather than upfront subsidies.
The initiative reflects a broader policy pivot from reliance on imported raw materials to “urban mining” and circular supply chains, particularly for minerals such as lithium, cobalt, and nickel. These materials are essential for sectors like electric vehicles, electronics, and renewable energy systems, where supply risks remain concentrated in a few geographies.
Key Statistical and Industry Benchmarks
Total Scheme Outlay: ₹1,500 crore designated for financial incentives.
Eligible Entities: 58 companies approved for participation.
Pledged Investment: Approximately ₹5,000 crore committed by the industry.
Total Pledged Capacity: About 850 KTPA for mineral recovery.
Primary Feedstock: Focus on lithium-ion batteries, e-waste, and industrial scrap.
Evaluation Lead: JNARDDC served as the Project Management Agency (PMA).
What is "Critical Mineral Recycling"?
Critical mineral recycling is the process of recovering high-value elements, such as lithium, cobalt, nickel, and rare earth elements, from end-of-life products like old smartphones and electric vehicle batteries. Because these minerals are essential for high-tech industries and green energy but are often geographically concentrated in a few countries, recycling provides a "secondary source" of supply. This "urban mining" ensures that valuable materials are kept within the economy, lowering the environmental impact of traditional mining and protecting the supply chain from global geopolitical disruptions.
Policy Relevance
Strategic Autonomy: By recovering minerals domestically, India reduces its vulnerability to global supply chain shocks and the export controls of mineral-rich nations.
Supports the EV Transition: The focus on lithium-ion battery recycling is critical for the success of India's FAME-II and PLI schemes, ensuring that EV battery materials remain within a closed-loop domestic system.
Circular Economy Goals: The scheme aligns with the National Critical Mineral Mission's objective to minimise waste and promote the sustainable reuse of industrial and electronic scrap.
Attracts High-Value Investment: The ₹5,000 crore pledged investment indicates that the recycling sector is maturing into a significant industrial vertical, capable of generating specialised green jobs.
Advanced Manufacturing: A steady supply of recycled critical minerals is a prerequisite for India to become a global hub for semiconductors, electronics, and aerospace hardware.
Relevant Question for Policy Stakeholders: With 58 companies now eligible and 850 KTPA capacity pledged, how can the Ministry of Mines and MeitY collaborate to mandate ‘recycled content targets' for new electronic and EV products to ensure a steady market demand for these recovered minerals?
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