India is set to introduce new incentives this year to encourage the recycling of 24 critical minerals, including essential materials like lithium and cobalt, as part of its broader strategy to advance clean energy efforts and reduce carbon emissions.
According to sources familiar with the matter, the government will offer financial support to stimulate the recycling industry for these minerals, which are considered vital to India’s clean energy ambitions and its pledge to achieve net-zero greenhouse gas emissions by 2070.
The scheme is expected to include incentives such as subsidies on capital investments or production-linked benefits. While the final details are yet to be publicly disclosed, one source mentioned that the program will be implemented over the next four to five years. A budget of ₹15 billion has already been allocated for this recycling initiative, which is part of a larger ₹163 billion fund dedicated to developing the critical minerals sector.
A key objective of the initiative is to increase India’s lithium-ion battery recycling capacity, which currently stands at 75,000 metric tons per year. Expanding this capability is crucial as the adoption of electric vehicles (EVs) gains momentum in the country.
In a move to further support recycling, the government recently removed customs duties on waste and scrap materials of 12 essential substances, including cobalt powder, lithium-ion batteries, and other key inputs.
These measures come as India seeks to boost domestic EV production and reduce dependence on fossil fuels. Although EVs accounted for only 2.5% of the 4.3 million cars sold in 2024, their growth far outpaced the broader market - rising 20% compared to a 5% increase overall. Analysts forecast EV sales could double to 200,000 units in 2025, driven by an influx of new models.