Incentive Scheme for Promotion of Critical Minerals Recycling

Notified under the National Critical Minerals Mission, this scheme sets aside INR 1500 crore (approx. EUR 145 million) to provide financial incentives for the development of recycling capacity for  the separation and production of critical minerals from secondary sources like e-waste and spent lithium-ion batteries. 

 

Beneficiaries: The beneficiaries under the scheme are recyclers of secondary products that recover and extract critical minerals. Beneficiaries are classified into two categories (large and small operators) based on their global manufacturing revenue. 

Eligible input: E-waste, lithium-ion battery scrap, and other scrap such as catalytic converters in end of life vehicles, with concentration of individual critical minerals being less than 30%.

Eligible process: The scheme would incentivise the actual extraction of critical minerals (rather than collecting, shredding, sorting) through processes such as chemical processing, black mass processing, metallurgical extraction etc. 

Eligible output: The scheme lays down minimum conditions that the recovered critical minerals must meet to be eligible under the scheme, including purity of output, compound form, and minimum recovery yield.

Incentives: The scheme offers subsidies on capital expenditure (ranging from 14% to 20% depending on time taken to start production) and incentives for operational expenditure (dependent on achievement of thresholds for incremental sales). The scheme also sets a ceiling for the total incentive that may be claimed by an applicant.  

Incentive Period: The scheme has a tenure of 6 years from 2025 to 2031.

In addition, the Government has already eliminated customs duty for waste and scrap of lithium-ion batteries and other critical minerals in the financial year 2025-26, thereby facilitating imports of recycling feedstock. 

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