Critical Mineral Recycling Incentive Scheme: 58 Firms Approved
Why in the news
The Ministry of Mines cleared 58 companies as eligible participants in its critical mineral recycling incentive scheme. India imports over 80% of key critical minerals such as lithium, cobalt and nickel, so recycling is a way to cut that dependence.
Key facts
- Scheme name: Incentive Scheme for Promotion of Critical Mineral Recycling, a part of the NCMM (National Critical Mineral Mission).
- Notified 2 October 2025; six-year tenure covering FY 2025-26 through FY 2030-31.
- Administered by the Ministry of Mines; total outlay ₹1,500 crore.
- 58 companies approved so far.
- Feedstock targeted: discarded electronics, used lithium-ion batteries (LIBs), permanent magnets and catalytic converters.
- Both greenfield (new) and brownfield (expansion or modernisation) projects of registered Indian recyclers qualify.
Incentive design
| Feature | Detail |
|---|---|
| Capex subsidy | 20% when on schedule; cut to 17% or 14% for late projects |
| Opex subsidy | Split into two tranches (40% in Year 2, 60% in Year 5), tied to incremental sales over the FY 2025-26 base year |
| Hybrid option | Capex and Opex support can be combined within set ceilings |
| Group A | Large firms, Global Manufacturing Revenue of ₹200 crore or more; ceiling ₹50 crore |
| Group B | Smaller firms, GMR below ₹200 crore; ceiling ₹25 crore |
Background
- Critical minerals are economically vital for clean energy, electronics, defence and advanced manufacturing, but carry supply risk because reserves and processing sit in few countries. Examples: lithium, cobalt, nickel, copper, rare earths, graphite, vanadium and silicon.
- India’s own official list, issued by the Mines Ministry in June 2023, names 30 critical minerals.
- NCMM aims at long-term availability by combining home-grown exploration, mining and refining with recycling and acquiring assets overseas.
- Urban mining means recovering metals from used products and waste instead of primary deposits.
- A circular economy keeps resources in use through reuse, recycling, refurbishment and remanufacturing.
- KABIL (Khanij Bidesh India Ltd.) is a 2019 joint venture of NALCO, HCL and MECL for acquiring mineral assets abroad.
- The Minerals Security Partnership (MSP) is a US-led multilateral effort, including India, to secure mineral supply chains.
Significance
- Builds critical mineral security and lowers import reliance.
- Develops a circular economy in minerals, supporting clean energy, defence and manufacturing.
- Concentration of supply (China in rare earths and battery-mineral processing, Australia in lithium mining, the DRC in cobalt) exposes importers like India to risk.
Exam angle
- Nodal ministry: Mines; parent mission: NCMM.
- Numbers to recall: ₹1,500 crore, 58 firms, 20% capex, 40%/60% opex, ₹50 crore and ₹25 crore ceilings.
- Related terms: urban mining, greenfield versus brownfield, KABIL, MSP.