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India's E-Waste Revolution: How Rs 1,500 Crore Plan Recovers Critical Minerals

India is making a major push to recycle electronic waste and recover valuable minerals. The government has launched a Rs 1,500 crore incentive scheme to boost domestic recycling capacity. This initiative targets materials like e-waste and used lithium-ion batteries that contain critical minerals. The program aims to reduce import dependency while creating a formal recycling ecosystem.

Key Points: India's Critical Mineral Recycling Scheme for E-Waste Recovery

  • Rs 1,500 crore incentive scheme approved for critical mineral recycling
  • Targets 1.75 million tonnes of annual e-waste and battery scrap
  • Removes customs duty on lithium-ion battery scrap imports
  • Formalizes collection through Extended Producer Responsibility framework
2 min read

India pushes for e-waste recycling to recover critical minerals

India launches Rs 1,500 crore incentive scheme to boost e-waste recycling and recover critical minerals like lithium and cobalt, reducing import dependency.

"The new scheme will reward recyclers engaged in the actual extraction of minerals like lithium, cobalt, and nickel - Ministry of Mines"

New Delhi, October 25

The Ministry of Mines has been actively engaging with the private sector to build enough capacity in India to fully utilize electronic waste and recover critical minerals within the next few years, according to a press release issued by the Ministry of Mines on Friday.

The initiative follows the Union Cabinet's approval on September 3, 2025, of a Rs 1,500 crore Incentive Scheme for critical mineral recycling. This scheme, a key component of the National Critical Mineral Mission, aims to promote sustainable recovery of vital materials through recycling instead of relying solely on imports.

The Ministry of Mines released detailed guidelines for the scheme on October 2, 2025, after consulting with industry stakeholders. The same day, the application process for participation began. The Ministry stated that stakeholders welcomed the quick rollout and have shown strong interest in joining the effort.

Under the scheme, eligible feedstock includes e-waste, used lithium-ion batteries (LIBs), and other scrap such as catalytic converters from end-of-life vehicles. According to the Ministry's data, India generates about 1.75 million tonnes of e-waste and 60 kilo tonnes of spent LIBs annually. With the removal of customs duty on LIB scrap in the 2025-26 Union Budget, imports of such waste will be easier, expanding recycling opportunities over the next four to five years.

Feedstock collection will also improve through formalization under the Extended Producer Responsibility (EPR) framework, which mandates producers to ensure proper collection and recycling of e-waste and battery waste. At present, much of the material known as black mass, powder containing valuable metals, is exported without extracting the minerals domestically due to limited processing capacity. The new scheme will reward recyclers engaged in the actual extraction of minerals like lithium, cobalt, and nickel, encouraging dismantlers, crushers, and shredders to enter the formal recycling chain.

Few companies in India currently operate complete end-to-end recycling systems, also known as R4 recycling, which convert battery scrap into metals. To widen participation, incentives under the scheme are capped at Rs 50 crore for large recyclers and Rs 25 crore for smaller ones.

The Ministry said the initiative will boost recycling capacity using proven technologies such as hydrometallurgy. Research institutions including IITs and CSIR labs have already developed indigenous techniques for metal recovery and purification. These institutes are also providing training in mineral processing and extraction, ensuring that any skill requirements under the scheme can be met through academic and industrial collaboration.

- ANI

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Reader Comments

R
Rajesh Q
As someone working in the recycling industry, this is a welcome move. The current practice of exporting black mass without extracting minerals domestically is such a waste of resources. The incentive caps seem reasonable - should help both big players and smaller entrepreneurs.
A
Arjun K
Good initiative but implementation will be key. We've seen many schemes fail due to poor execution. Hope the EPR framework is strictly enforced and doesn't become another paperwork exercise for companies. The involvement of IITs and CSIR labs is promising though.
S
Sarah B
This is exactly what India needs - reducing import dependence while tackling environmental issues. The numbers are staggering - 1.75 million tonnes of e-waste annually! Hope this creates awareness among common people about proper e-waste disposal too.
V
Vikram M
The training component through academic collaboration is crucial. We need skilled technicians and engineers for this to work long-term. Hope they include vocational training institutes along with IITs to create employment opportunities across skill levels.
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Nisha Z
While the scheme looks good on paper, I'm concerned about the environmental impact of recycling processes. Hydrometallurgy can create toxic byproducts if not managed properly. Hope there's strong monitoring for pollution control alongside these incentives.
M
Michael C

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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