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Cabinet Approves Rs15 Billion Incentive Program for Critical Mineral Recycling

The Union Cabinet has approved a Rs15 billion incentive program under the National Critical Mineral Mission to boost India’s recycling capacity for recovering critical minerals from e-waste and lithium-ion battery scrap. The program, with a tenure till FY 2031, aims to develop 270 kilotons of annual recycling capacity, yielding 40 kilotons of minerals annually, attracting around Rs80 billion in investments, and creating 70,000 jobs.

The scheme offers a 20?pital expenditure subsidy on machinery and utilities, alongside an operational subsidy linked to incremental sales post-FY 2026. Subsidy ceilings are set at Rs500 million for large and Rs250 million for small entities, with one-third of funds reserved for new and small recyclers. Importantly, incentives cover only critical mineral extraction, excluding black mass producers.

Part of the Rs163 billion National Critical Mineral Mission, this initiative strengthens India’s supply chain resilience for key minerals like lithium, cobalt, nickel, graphite, and silicon, crucial for EV batteries, energy storage, and clean energy technologies.