Summary:

India will roll out incentive schemes this year to promote the recycling of 24 key critical minerals, including lithium and cobalt, which are crucial to the country’s green energy goals. These minerals have been classified as strategic to India’s net zero emissions target by 2070. The government has earmarked Rs. 1,500 crore (US$ 174.07 million) for recycling efforts, as part of a broader Rs. 16,300 crore (US$ 1.89 billion) investment plan for the development of the critical minerals sector.

Sources familiar with the matter suggest that the incentives could include capital expenditure subsidies or production-linked support, with funds to be distributed over the next 4 to 5 years. The scheme aims to expand India’s lithium-ion battery recycling capacity to 75,000 metric tonnes per year. To ease supply constraints, the government in February 2025 removed customs duties on scrap and waste of key materials like lead, zinc, cobalt powder and lithium-ion batteries. These minerals are essential for Electric Vehicle (EV) manufacturing, a sector India is pushing to cut fossil fuel use. EVs accounted for 2.5% of the 43 lakh cars sold in 2024, growing 20% compared to the overall market’s 5% rise. Analysts expect EV sales to double to nearly 2,00,000 units in 2025, boosted by new model launches.

Source: IBEF

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