India is expected to launch formalised incentive schemes in 2025 to promote the recycling of 24 identified critical minerals, such as lithium, cobalt, and zinc. These minerals are essential to India’s clean energy roadmap and net-zero greenhouse gas emissions target by 2070.
To support this initiative, the government has earmarked ₹1,500 crore (US$174.07 million) as part of a broader ₹16,300 crore (US$1.89 billion) commitment toward strengthening the critical minerals ecosystem in the country.
According to sources, the incentive scheme is likely to include capital expenditure subsidies or production-linked incentives (PLIs). These incentives are expected to be disbursed over the next 4–5 years, encouraging private players to invest in mineral recycling infrastructure and innovation.
The initiative aims to scale India’s lithium-ion battery recycling capacity to 75,000 metric tonnes annually, a significant increase from current levels. This expansion is expected to strengthen India’s domestic supply chain for battery materials and reduce import dependence.
In a supporting move, the government removed customs duties in February 2025 on waste and scrap materials of lead, zinc, cobalt powder, and lithium-ion batteries. This step is likely to lower costs for recyclers and enhance material availability, which is crucial for scaling up operations.
India’s electric vehicle (EV) segment is accelerating. In 2024, EVs accounted for 2.5% of the 4.3 million cars sold, reflecting a 20% year-on-year growth compared to the broader market’s 5%. Analysts predict EV sales to double to 2,00,000 units in 2025, backed by new model launches and policy support.
By promoting recycling, India is taking a strategic step towards a circular economy and resource self-reliance. This approach not only contributes to sustainability but also supports job creation, industrial growth, and energy security—essential components of India’s green energy vision for 2070.
As India progresses towards a low-carbon economy, such policy initiatives could become instrumental in accelerating the transition and fostering a robust circular economy for green technologies.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Apr 11, 2025, 3:35 PM IST
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