Cabinet Approves ₹1,500 Crore Scheme to Boost Critical Mineral Recycling
The Union Cabinet has approved a ₹1,500 crore incentive scheme to promote the recycling of critical minerals from sources like e-waste and battery scrap. Part of the National Critical Mineral Mission, the six-year plan aims to develop domestic recycling capacity, reducing import dependency and strengthening supply chains for minerals vital to technology and defence. The scheme will provide capital and operational subsidies to recyclers, and is expected to attract ₹8,000 crore in investment and create 70,000 jobs.
Unpacked:
India has identified 30 minerals as critical, including lithium, cobalt, nickel, graphite, and rare earth elements, due to their importance in technology, clean energy, and defense sectors. This list is periodically updated by dedicated research institutes to reflect changing strategic needs.
Recycling is crucial for India because the country has limited extractable reserves of many critical minerals. Recycling helps reduce import dependency, supports sustainable supply chains, and is necessary to meet growing demand for clean energy and advanced technologies.
India faces technological challenges due to a lack of advanced extraction and processing capabilities, limited recycling infrastructure, and the need for substantial investment in research and development to innovate cost-effective recycling methods.
Globally, there is concern about overdependence on countries like China for mining and processing critical minerals. India's scheme aligns with international trends to diversify supply chains, promote recycling, and enhance self-sufficiency, reducing vulnerability to geopolitical risks.