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India Approves $170 Million Incentive for Critical Minerals Recycling
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New Delhi – India’s cabinet has greenlit a 15 billion rupee ($170 million) incentive program designed to considerably increase the recycling of critical minerals sourced from end-of-life batteries and electronic waste.This move underscores India’s growing commitment to securing a stable supply of rare earth elements and reducing its reliance on imports. The initiative, approved on September 3, 2025, aims to establish a robust circular economy for these vital resources.
The program will provide financial incentives to companies involved in the collection, processing, and refining of critical minerals like lithium, cobalt, nickel, and rare earth elements. These materials are essential components in electric vehicle batteries, renewable energy technologies, and various high-tech applications. This is a crucial step towards self-reliance in critical minerals,
stated a senior government official involved in the program’s development.
India’s demand for critical minerals is projected to surge in the coming years, driven by its ambitious goals for electric vehicle adoption and renewable energy expansion. Currently, the country heavily relies on imports, primarily from China, for these materials. This new program seeks to mitigate supply chain vulnerabilities and foster domestic capabilities in the recycling sector.
Did You Know? …
India is the world’s third-largest consumer of energy, and its demand is rapidly increasing.
the incentive structure will likely include production-linked incentives (PLI) and other financial support mechanisms to encourage investment in recycling infrastructure and technology. The Ministry of Mines is expected to release detailed guidelines outlining the eligibility criteria and application process for companies seeking to participate in the program.
Pro Tip: …
Keep an eye on the Ministry of Mines website for the official guidelines release.
| Metric | Value |
|---|---|
| Total Investment | ₹15 Billion |
| USD Equivalent | $170 Million |
| approval date | Sept 3, 2025 |
| Target Materials | Lithium, Cobalt, Nickel, rare Earths |
| Primary Goal | boost Recycling |
NITI Aayog Report on critical Minerals (2023) – Highlights India’s strategic need to secure access to critical minerals for its economic growth.
The initiative aligns with India’s broader national strategy to promote enduring development and resource efficiency. By recovering valuable materials from waste streams, the program will also contribute to reducing environmental pollution and minimizing the need for virgin resource extraction. The long-term vision is to create a closed-loop system where end-of-life products are transformed into valuable resources, fostering a circular economy.
This move is part of a global trend towards greater resource circularity. The european Union, for example, has implemented similar regulations to promote battery recycling and reduce reliance on imported raw materials [European Commission, Battery Regulation (2023)]. India’s program is expected to attract both domestic and international investment in the recycling sector.
Background & Trends
The global demand for critical minerals is escalating due to the energy transition and the proliferation of electric vehicles.Securing a stable and sustainable supply of these materials is a strategic priority for many countries. Recycling offers a viable solution to reduce dependence on primary mining and mitigate environmental impacts. The development of advanced recycling technologies is crucial for maximizing resource recovery and minimizing waste.
Frequently Asked Questions
- What are critical minerals? These are elements essential for modern technologies,facing potential supply disruptions.
- What is the goal of this recycling program? To secure India’s access to vital resources and reduce import dependence.
- How much investment is involved? ₹15 billion (approximately $170 million) is allocated for incentives.
- What
