The Union Mines Ministry has said that feedstock availability for India ₹1,500 crore critical mineral recycling incentive scheme will be ensured through formalised waste collection under the Extended Producer Responsibility (EPR) framework. In a response to ET, the ministry noted that integrating e-waste and battery waste into the recycling ecosystem will strengthen the domestic supply chain and boost local recyclers.
Industry stakeholders had raised concerns that informal waste collection, limited recycling capacity, and a cap on incentives might hinder the scheme’s implementation. Addressing these, the ministry said that e-waste and battery waste management rules under EPR already mandate extraction of specified end-products. However, it acknowledged that India’s capacity to process black mass a key intermediate from spent lithium-ion batteries (LIBs) remains limited, leading to its export without recovering valuable critical minerals.
Approved in September, the incentive scheme opened applications this month. The ministry expects it to attract more recyclers, including dismantlers, crushers, and shredders, into the formal system. “Many private recycling companies are already running efficient scrap collection systems,” it said, adding that the scheme aims to enhance collaboration between these entities and formal EPR networks.
Under the initiative, feedstock sources include e-waste, spent LIBs, and catalytic converters from end-of-life vehicles. India currently generates about 1.75 million tonnes of e-waste annually and around 60 kilotonnes of spent LIBs. The ministry said feedstock availability will increase significantly in the next 4–5 years, aided by the elimination of customs duty on LIB scrap through the Union Budget 2025–26.
On the industry’s concern regarding capped incentives, the ministry clarified that limits ₹50 crore for large recyclers and ₹25 crore for smaller ones were set to ensure broader participation and equitable distribution of benefits.
With the EPR framework and new incentives working together, the government aims to build a self-sustaining ecosystem for critical mineral recycling, reduce dependence on imports, and strengthen India’s clean energy supply chain.