The Ministry of Mines has officially launched guidelines for its much-anticipated ₹1,500 crore Incentive Scheme to promote critical mineral recycling. Approved by the Union Cabinet in early September 2025, this scheme marks a major step toward strengthening India’s circular economy and reducing dependence on imported raw materials crucial for the energy transition and high-tech industries.
Focus on Lithium-Ion Batteries, E-Waste, and Secondary Sources
The scheme falls under the National Critical Mineral Mission and is designed to encourage the development of a robust ecosystem for recycling critical minerals from secondary sources. Eligible feedstock includes e-waste, spent lithium-ion batteries (LiBs), and other forms of scrap that contain critical minerals.
It aims to support both new recycling units and the expansion or modernization of existing facilities. However, only players involved in actual extraction and processing of critical minerals — not just black mass production — will qualify for incentives.
Inclusive Participation from Startups to Large Enterprises
The scheme is open to a wide range of applicants, from established large-scale recyclers to startups and small businesses. By targeting the full recycling value chain, the government aims to unlock innovation and investment in this critical space. The guidelines outline the methodology for incentive allocation, performance benchmarks, disbursement mechanisms, and review protocols.
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Applications opened on October 2, 2025, and will be accepted for a six-month period until April 1, 2026. Interested entities can access the scheme details and application portal on the Ministry of Mines’ official website.
A Strategic Move to Support India’s Green Goals
With India setting ambitious goals for clean energy, EV adoption, and net-zero emissions by 2070, access to critical minerals like lithium, cobalt, and rare earth elements is vital. Recycling provides a sustainable alternative to raw material imports and supports long-term supply security.
Officials note that the initiative is expected to create green jobs, reduce the environmental impact of discarded electronics, and position India as a responsible player in the global energy transition. The government believes that this scheme, coupled with its policy focus on domestic exploration and processing of critical minerals, will be a game-changer for the sector.