India accelerates E-waste recycling with rs 1,500 crore critical minerals incentive scheme

The Ministry of Mines is stepping up efforts to transform India’s electronic waste (e-waste) sector into a hub for critical mineral recovery, with an ambitious plan to fully utilize domestic e-waste and lithium-ion battery scrap within the next few years.

According to a press release issued by the Ministry on Friday, this initiative follows the Union Cabinet’s approval of a Rs 1,500 crore Incentive Scheme for critical mineral recycling on September 3, 2025. The scheme, a key component of the National Critical Mineral Mission, is designed to promote the sustainable recovery of essential metals such as lithium, cobalt, and nickel, reducing India’s reliance on imports.

“India generates approximately 1.75 million tonnes of e-waste and 60 kilotonnes of spent lithium-ion batteries annually. By formalizing recycling and using proven extraction technologies, we can capture valuable minerals domestically and support the growing electric vehicle and renewable energy sectors,” the Ministry said.

The Ministry released detailed guidelines for the scheme on October 2, 2025, following consultations with industry stakeholders. The application process for participation began the same day. Officials said the move has been met with strong interest from recyclers and other industry players, signaling a quick adoption of the program.

Incentives and Participation :

Under the scheme, eligible feedstock includes e-waste, used lithium-ion batteries, and other scrap such as catalytic converters from end-of-life vehicles. With the removal of customs duties on lithium-ion battery scrap in the 2025-26 Union Budget, importing such waste for domestic processing has become easier, broadening recycling opportunities over the next four to five years.

Incentives are structured to reward companies that engage in full end-to-end recycling (R4 recycling), which converts battery scrap into reusable metals. To encourage broad participation, the government has capped incentives at Rs 50 crore for large recyclers and Rs 25 crore for smaller entities, including innovative start-ups. Eligible participants must comply with environmental regulations and demonstrate the capability to process feedstock using approved technologies.

Technology and Skill Development :

The initiative will leverage proven hydrometallurgical methods for metal recovery, alongside indigenous techniques developed by IITs and CSIR labs. These methods include solvent extraction, precipitation, and purification processes that ensure battery-grade metals. Academic and research institutions are also providing training programs to build the required skills in mineral processing and extraction.

“By combining government incentives with academic expertise and industry experience, India can rapidly scale domestic recycling capacity, reduce hazardous waste, and strengthen our strategic mineral security,” said a Ministry spokesperson.

Strategic and Environmental Benefits :

Currently, much of India’s “black mass”powder contains valuable metals exported without domestic processing due to limited recycling capacity. The new scheme aims to reverse this trend, recovering an estimated 15–20 kilotons of lithium, 3–5 kilo tons of cobalt, and 10–12 kilotonnes of nickel annually.

The environmental benefits are equally significant, with proper recycling expected to reduce soil and water contamination from hazardous e-waste and lower India’s carbon footprint. Strategically, the program strengthens India’s position in the global battery and electric vehicle supply chain, decreasing dependence on imported critical minerals.

With formalized collection under the Extended Producer Responsibility (EPR) framework and incentives tied to actual mineral recovery, the Ministry aims to achieve substantial domestic recycling capacity by 2028–2029. Companies such as Attero Recycling, Exide Industries, and Umicore India are expected to play a leading role, alongside start-ups and innovators entering the formal recycling ecosystem.

The Ministry emphasized that this initiative represents a major step toward a circular economy for critical minerals in India, combining policy, technology, and industry collaboration to turn e-waste into a strategic resource.