Rs 1,500-crore scheme for recycling critical minerals gets Cabinet nod

The Union Cabinet on Wednesday approved a Rs 1,500-crore incentive scheme to develop recycling capacity for the separation and production of critical minerals from secondary sources. The scheme is a part of the National Critical Mineral Mission, which is aimed at building the domestic capacity and supply chain resilience in critical minerals.

The related value chain – which comprises exploration, auction and mine operationalization and acquisition of foreign assets — has a gestation period before the industry can supply critical minerals to the Indian industry. Recycling of secondary sources is a prudent way to ensure supply chain sustainability in the near term.

The incentive scheme will have a tenure of six years till FY2030-31. An official statement said, “Eligible feedstock includes e-waste, scrap of lithium ion battery (LIB) and things other than e-waste and LIB scrap. The scheme will benefit both large recyclers, as well as small recyclers and start-ups. One-third of the scheme’s outlay has been earmarked for the latter.”

As it will be applicable to investments in new units as well as expansion of capacity modernisation and diversification of existing units, it will also provide incentive for recycling value chain, which is involved in actual extraction of critical minerals (not the value chain involved in only black mass production).

Notably, incentives under the scheme are expected to develop at least 270 kilo tonnes of annual recycling capacity, leading to 40 kilo tonnes of annual critical mineral production, bringing Rs 8,000 crore of investment and 70,000 direct and indirect jobs.