India approves plan to recycle critical minerals from waste

India’s cabinet approved a 15 billion rupee ($170 million) incentive program to boost recycling of critical minerals from batteries and e-waste, stepping up efforts to secure access to rare earths.

Part of the National Critical Mineral Mission, the scheme will run from fiscal 2026 to 2031 and is aimed at building domestic capacity to recover minerals from discarded electronics and used batteries.

The effort is a part of a push by the Indian government to secure rare earth supplies that are crucial to EV makers and diversify away from China. Despite signs of a thaw in India-China relations, automakers in the South Asian country still lack supply of heavy rare earth magnets.

Both large firms and startups will be eligible, with a third of the funding set aside for smaller recyclers, the government said in a statement on Wednesday. Incentives include a 20% subsidy on plant and equipment and support for operating costs tied to sales growth.

Large firms can receive as much as 500 million rupees in incentives, while smaller players will be capped at half that amount. The government expects the plan to create 270,000 tons of annual recycling capacity, producing around 40,000 tons of minerals, and drawing 80 billion rupees in investment.

(By Akriti Sharma and Preeti Soni)