India approves critical minerals recycling plan to build domestic capacity

India Critical Minerals Recycling

India approves critical minerals recycling plan to scale strategic materials from waste at home. The critical minerals recycling plan allocates ₹15bn ($170mn) in incentives over six years. As a result, the critical minerals recycling plan targets 270,000t/yr of recycling capacity and 40,000t/yr of recoverable minerals.

What the scheme funds and who benefits

The program backs extraction, not just black-mass production. It supports e-waste, battery scrap, and other feedstocks for cobalt, copper, graphite, lithium, and rare earths. Moreover, subsidies cover both new plants and expansions across large and small recyclers. One-third of funding is reserved for small and new entrants to widen participation.

Incentive mechanics and expected market impact

Capital support covers up to 20% of plant and utilities. Operating support links to sales with defined ceilings per entity. Large entities can receive up to ₹500mn total, with OPEX capped at ₹100mn. Small entities can receive up to ₹250mn, with OPEX capped at ₹50mn. Therefore, more firms can benefit, accelerating capacity build-out and technology adoption.

India is aligning trade policy with industrial goals. Earlier customs duty cuts on some critical minerals lower input costs for recyclers. Consequently, developers can close project finance gaps and localize midstream steps. The National Critical Mineral Mission anchors the timeline from FY2025-26 to FY2030-31.

The Metalnomist Commentary

India is moving from raw-material dependency to circular security. Execution will hinge on feedstock logistics, product qualification, and offtake certainty for oxides and salts. If EPC and permitting move quickly, domestic CAM and alloy supply chains could gain a decisive cost edge.