The allocation of a Rs 1,500 crore incentive scheme to promote the recycling of battery waste and e-waste for the extraction of key minerals is set to reshape India’s material supply chain, reduce import dependence, and accelerate the country’s transition to a circular economy, according to industry experts. Rajat Verma, founder & CEO of LOHUM, is of the view that by recycling critical mineral-containing waste streams, India has the opportunity to convert discarded assets into strategic resources, cut import dependence, and accelerate high-value manufacturing across the nation.
“This crucial policy support will catalyse investments, deep-tech innovation, job creation, and sustainable capacity-building for critical mineral security, compounding India’s advantages for years to come,” said Verma.
Earlier this year, several strategic sectors in India faced disruptions after China — the world’s top exporter — halted the supply of rare earth magnets. In response, the Indian government has been exploring every possible avenue to secure domestic sources of critical minerals essential to electronics, renewable energy, and electric mobility, an official statement said.
Meanwhile, Attero, one of India’s pioneers in lithium-ion battery and e-waste recycling, expressed similar enthusiasm. Co-founder and CEO Nitin Gupta called the move a game changer for India’s circular economy and mineral self-reliance. “Recycling is the fastest and most sustainable way for an Atmanirbhar Bharat that can ensure domestic availability of essential minerals like lithium, cobalt, nickel, and rare earth elements without depending on imports,” said Gupta.
He added that the this will boost investments in advanced recycling infrastructure in the country. The Cabinet-approved Rs1,500 crore scheme aims to encourage domestic recycling of minerals vital for clean energy technologies, particularly in electric mobility, battery storage, and electronics manufacturing. The incentives are expected to attract private investment into advanced recycling technologies, supporting India’s National Critical Minerals Mission (NCMM) and reducing strategic vulnerabilities in global supply chains.
The scheme will run for six years, from FY2025-26 to FY2030-31, and will cover recycling of e-waste, lithium-ion battery scrap, and other waste streams such as catalytic converters from end-of-life vehicles. Both large, established recyclers and smaller players — including startups — will be eligible for incentives. Notably, one-third of the total outlay is reserved for smaller entities.