In a significant move to strengthen India’s supply chain for critical minerals, the Union Cabinet, led by Prime Minister Narendra Modi, has approved a ₹1,500 crore incentive scheme aimed at boosting domestic recycling capacity. The scheme, which falls under the National Critical Mineral Mission (NCMM), is designed to recover the separation and production of essential minerals from secondary sources, like waste materials, to enhance the resilience of India’s critical mineral supply chain.
The process of exploring, auctioning, and operating mines, along with acquiring foreign assets, takes time before critical minerals can be supplied to Indian industries. The Ministry of Mines has described the scheme as a smart approach to ensure a steady supply of minerals in the short term by recycling materials like waste.
The ₹1,500 crore incentive plan will run for a duration of six years, spanning from FY 2025-26 to FY 2030-31. It will focus on the recycling of key feedstock such as e-waste, lithium-ion battery (LIB) scrap, and other scrap materials, including catalytic converters from end-of-life vehicles.
This move is expected to reduce dependence on foreign sources and provide a more sustainable and cost-effective approach to securing critical minerals needed for industries ranging from electronics to electric vehicles
Union Minister HD Kumaraswamy praised the Cabinet’s approval of a ₹1,500 crore Incentive Scheme for Critical Mineral Recycling, part of the National Critical Mineral Mission (NCMM). The scheme focuses on recycling materials like e-waste, lithium-ion battery scrap, and catalytic converters from old vehicles. It aims to strengthen India’s mineral supply chain, promote sustainability, and support both large recyclers and start-ups in growing the recycling industry.
The scheme aligns with India’s push for green mobility and clean energy, helping ensure a sustainable supply of minerals for electric vehicles and emerging technologies. By 2030-31, it is expected to create 270,000 tonnes of recycling capacity annually, produce 40,000 tonnes of critical minerals, attract ₹8,000 crore in investments, and create 70,000 jobs. Kumaraswamy called it a step towards a stronger circular economy and achieving India’s Atmanirbhar Bharat and net-zero goals.
Here is a list of stocks likely to benefit
Gravita India Ltd
Gravita India Ltd is a leading player in recycling and manufacturing of lead and other metals. It has a strong presence in the recycling of lead batteries, e-waste, and other critical materials.
The company focuses on sustainability and resource recovery, making it well-positioned to benefit from this incentive scheme for critical mineral recycling. The scheme’s focus on battery scrap and e-waste aligns with Gravita’s business model, allowing it to expand its recycling capacity and tap into new opportunities in the circular economy.
Amara Raja Energy & Mobility Ltd
Amara Raja Energy & Mobility Ltd is a prominent player in the battery manufacturing sector, particularly for electric vehicles (EVs) and energy storage systems. With growing demand for lithium-ion batteries and other critical minerals for EVs, the company is well-positioned to benefit from the Critical Mineral Recycling Scheme. Through increased access to recycled materials, Amara Raja can ensure a sustainable supply chain, lower material costs, and accelerate its EV-related offerings.
Pondy Oxides & Chemicals Ltd
Pondy Oxides & Chemicals Ltd is involved in the recycling of lead and other metals. It produces high-quality lead from scrap batteries and other waste materials. The company stands to benefit from the incentive scheme by scaling up its recycling operations, particularly for lithium-ion battery scrap and e-waste.
This scheme will provide the company with subsidies for Capex and Opex, allowing it to increase capacity and meet rising demand for critical minerals used in the green mobility and clean energy sectors.
NILE Ltd (National Industrial Corporation Ltd)
NILE Ltd is engaged in the production and recycling of non-ferrous metals, including copper, aluminum, and zinc, which are vital for battery manufacturing and electric vehicles. With the government’s focus on increasing the recycling of critical minerals like lithium and cobalt,
NILE can expand its operations and will benefit from subsidies for upgrading its facilities, boosting production capabilities, and ensuring a steady supply of recycled minerals for emerging industries.
Exide Industries Ltd
Exide Industries Ltd is one of India’s largest battery manufacturers, producing lead-acid and lithium-ion batteries for the automotive and industrial sectors. As demand for electric vehicles (EVs) rises, Exide is well-positioned to benefit from the Critical Mineral Recycling Scheme.
The scheme’s focus on recycling battery scrap will help Exide reduce reliance on raw material imports and improve the sustainability of its supply chain, further strengthening its position in the growing EV and energy storage markets.
Written by Sridhar J
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