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Recently, on 3rd September 2025, the Union Government approved a ₹1,500 crore incentive scheme to promote critical mineral recycling in the country.^[1] The scheme is part of the National Critical Mineral Mission^[2], aimed at strengthening domestic capacity and ensuring supply chain resilience in critical minerals.

Policy Implications

The scheme is designed to serve multiple purposes in both the short and long term. Even as relations with China show signs of renewed warmth amid shifting geopolitics, India appears to have drawn lessons from China’s curbs^[3] on critical mineral exports.

Critical minerals are indispensable for producing solar panels, EVs, semiconductor chips, and a wide range of electronic goods. As India advances in electronics manufacturing, welcomes a nascent semiconductor industry, and embraces EV adoption, these minerals are vital to the pace of development. For a rapidly growing Bharat, the availability of minerals essential for EV batteries, semiconductors, and solar panels is a strategic priority.^[4] Recycling will not only extend their availability but also enhance sustainability in supply chains.

Beyond ensuring mineral security, the incentive addresses the growing challenge of e-waste. The scheme complements the Battery Waste Management Rules (BWMR), 2022, which mandate phased recycling of used EV lithium-ion batteries starting in 2026.^[5]

Additionally, the government plans to establish Mineral Processing Parks—dedicated zones equipped with modern infrastructure for critical mineral processing. It also envisions creating a cumulative mineral stockpile to guarantee uninterrupted future supply.^[6] Together, these measures support India’s emerging production capacities, climate adaptation goals, and strategic move toward self-sufficiency in critical mineral supply chains.