As demand for things like lithium, cobalt, and rare earth elements grows with the push toward electric vehicles and renewable energy many countries around the world have started or are ramping up recycling of critical minerals
The Ministry of Mines on Saturday opened applications for the Rs 1,500 crore Critical Mineral Recycling Incentive Scheme, marking the formal launch of the initiative under the National Critical Mineral Mission. Recycling critical minerals is becoming a global priority, with many countries investing in new tech and infrastructure to close the loop on valuable resources.
The scheme is designed to boost India’s recycling capacity by promoting the extraction of critical minerals from secondary sources such as e-waste, spent lithium-ion batteries, and other industrial scrap. Incentives will be offered to both established recyclers and emerging players, including start-ups, for setting up new units or expanding and modernizing existing facilities. If executed well, the scheme could really help India reduce its reliance on imports and move toward a greener, more sustainable economy, but it will take ongoing effort and cooperation between the government, industry, and tech innovators, say experts
Recycling of critical metals is essential due to their limited availability, high import dependency, and increasing demand driven by the growth of electric vehicles, renewable energy, and digital technologies. Recovering these minerals from waste helps conserve natural resources, reduces environmental impact from mining, and supports a sustainable circular economy. Importantly, the scheme targets the entire recycling value chain involved in the actual extraction of critical minerals, excluding operations limited to black mass production.
This initiative is expected to reduce import dependency, create jobs, and support India’s green energy and digital economy goals. Whether this ₹1,500 crore scheme will really make a big impact depends on a few things. On the positive side, the government is putting serious money behind a crucial area—recycling critical minerals—which is a good move. The guidelines are detailed and seem to be designed with input from industry experts, so it’s not just a half-baked plan. Plus, by supporting both established companies and new startups, the scheme could spark innovation and growth across the board.
But there are some challenges too. Recycling things like lithium-ion batteries is pretty complex and needs advanced tech and infrastructure that India is still building up. Also, the scheme’s success will depend on how well the market responds and whether incentives are enough to encourage investment. On top of that, the government will have to make sure the process runs smoothly—like quickly giving out incentives and keeping an eye on progress. And it’ll be important to get lots of players, especially smaller ones, involved.
Countries ahead in the game
As demand for things like lithium, cobalt, and rare earth elements grows with the push toward electric vehicles and renewable energy many countries around the world have started or are ramping up recycling of critical minerals
For instance, China is by far the biggest recycler of critical minerals, especially rare earths and lithium-ion batteries. They have advanced recycling technologies and a large domestic supply chain, which helps them dominate this space. The U.S. too is investing heavily in critical mineral recycling through government programs and private sector partnerships, aiming to reduce dependence on imports, especially from China. Several pilot projects and recycling plants are underway.
According to reports the EU has ambitious plans to boost critical mineral recycling as part of its Green Deal and Circular Economy Action Plan. Countries like Germany, Finland, and Belgium are actively developing recycling infrastructure, particularly for lithium and rare earth metals. Japan is known for its advanced recycling technologies and has been recycling rare earths and lithium for years, focusing on efficient recovery from electronics and batteries and South Korea too is also ramping up recycling efforts, driven by its strong electronics and battery manufacturing industries.
