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Critical Mineral Recycling Incentive: 58 Firms Approved

1 May 20261 min read
NATIONAL AFFAIRSCritical MineralRecyclingIncentive: 58 FirmsApproved1 May 2026safalsetu.com

Why in the news

The Ministry of Mines settled its first list of approved firms for the recycling incentive scheme, a key part of the National Critical Mineral Mission. The aim is a safer supply chain for high-tech manufacturing and green energy.

Key facts

  • Scheme size: ₹1,500 crore incentive for critical mineral recycling.
  • Approved so far: 58 entities, roughly ₹5,000 crore investment pledged.
  • Recycling capacity targeted: 850 KTPA (kilo tonnes per annum).
  • Feedstock: Li-ion (EV) batteries, e-waste, and industrial scrap or slag.
  • Payment: performance-linked, paid after production actually starts.

Approval timeline

StageDateCompanies
Scheme notified2 October 2025–
Phase 1 approvals30 March 202620
Phase 2 approvals29 April 202638

Technical evaluation was handled by the Jawaharlal Nehru Aluminium Research Development and Design Centre (JNARDDC) as project management agency.

Significance

  • India imports close to 100% of several critical minerals, so recovering lithium, cobalt, nickel and copper from waste lowers import and mining needs.
  • Builds a closed-loop circular economy for EV batteries and electronics.
  • Secures minerals for solar panels, wind turbines and advanced electronics.

Background

  • Critical minerals are vital for economic growth and national security but have fragile supply chains, for example lithium, cobalt, nickel, graphite and rare earth elements.
  • Urban mining means recovering raw materials from used products and buildings instead of the ground.

Exam angle

  • Nodal ministry: Ministry of Mines.
  • Evaluation agency: JNARDDC.
  • Related terms: urban mining, circular economy, KTPA.

Test yourself

1. Which agency managed technical evaluation of proposals under the critical mineral recycling incentive scheme?

JNARDDC acted as project management agency for evaluating proposals.

2. What is the incentive outlay of the critical mineral recycling scheme under the National Critical Mineral Mission?

The scheme carries a ₹1,500-crore incentive.

3. How many companies were approved in total under the critical mineral recycling scheme across its two phases?

20 firms in Phase 1 plus 38 in Phase 2 gives 58.