India Plans ₹1,500 Cr Incentive Scheme to Boost Critical Mineral Recycling Under NCMM

In a strategic push to secure its supply chain for the energy transition and reduce import dependence, the Government of India is formulating a ₹1,500 crore incentive scheme aimed at promoting the recycling of critical minerals. The initiative is part of the broader National Critical Mineral Mission (NCMM), which was launched in January to support India’s ambitions in clean energy, electric mobility, and high-tech manufacturing.

The scheme, currently under development, is designed to encourage private sector participation in urban mining and mineral recovery from used batteries, electronics, and industrial waste, with a specific focus on high-value elements like neodymium, lithium, cobalt, copper, and nickel.

Strategic Importance of Critical Minerals

Critical minerals are vital to India’s green transition and strategic industries. These minerals are used in:

• Electric vehicle batteries (lithium, cobalt, nickel)

• Wind turbines and electronics (neodymium, rare earth magnets)

• Grid storage and renewable energy infrastructure

• Advanced computing and defense systems

However, India is heavily reliant on imports for most of these minerals, exposing the country to global supply shocks and price volatility. The new recycling-focused incentive scheme aims to localize sourcing, promote sustainability, and create new green jobs.

Private Sector Movement: Midwest Advanced Materials in Action

In a parallel development underscoring the emerging industrial ecosystem around rare earths, Midwest Advanced Materials (MAM), a Hyderabad-based company known for its work in advanced materials and rare earth magnet technologies, is in talks with the Non-Ferrous Materials Technology Development Centre (NFTDC) in Hyderabad.

According to officials, MAM is seeking to acquire NFTDC’s proprietary technology for the extraction and processing of rare earth magnets, particularly neodymium-based magnets, which are critical for manufacturing electric motors, wind turbines, and consumer electronics.

This move reflects growing private-sector interest in building a domestic value chain around critical minerals—from raw material recovery to advanced manufacturing.

Highlights of the Recycling Incentive Scheme

• Budget Allocation: ₹1,500 crore to be disbursed over a multi-year period

• Focus Areas: Recovery of high-demand critical minerals from end-of-life products

• Eligible Entities: Industrial players, startups, research institutions, and recycling firms

• Support Mechanisms:

  • Capital subsidies for plant and machinery

  • R&D incentives for recycling technology

  • Infrastructure support for collection and processing facilities

  • Skill development for specialized labor in recycling industries

National Critical Mineral Mission (NCMM): Backbone of the Initiative

The NCMM, launched in January 2025, was designed to ensure a stable supply of critical minerals for India’s growing clean energy and tech economy. It encompasses:

• Strategic mineral exploration and mapping

• Secure trade and processing partnerships

• Domestic processing and value addition

• Recycling and circular economy initiatives

This recycling scheme will be one of NCMM’s first major industrial implementation programs.

Looking Ahead: A Circular Economy for Critical Minerals

India’s push to establish a robust recycling ecosystem reflects a global shift toward circular economy principles. Recycling reduces environmental degradation from mining, conserves finite resources, and provides a hedge against international market disruptions.

The ₹1,500 crore incentive, combined with industry initiatives like MAM-NFTDC collaboration, marks the beginning of what could be a transformative phase for India’s mineral economy—creating self-reliance, industrial resilience, and environmental sustainability in one stroke.

With policy support, technological innovation, and proactive industry participation, India is positioning itself not just as a consumer but as a future-ready leader in critical mineral sustainability.