Central Government Unveils New Strategy for Critical Minerals

The Central Government has announced a major initiative to strengthen the supply of critical minerals required for electric vehicle (EV) batteries. The Ministry of Mines unveiled the ₹1,500 crore Critical Mineral Recycling Incentive Scheme at the Battery Summit 2026 in New Delhi. The scheme aims to recover valuable minerals such as lithium, cobalt, and nickel from discarded batteries, electronic waste, and end of life vehicles. It will be implemented under the National Critical Mineral Mission (NCMM).

With the rapid growth of the EV, power storage, and electronics sectors, demand for lithium ion batteries is increasing sharply in India. Industry estimates indicate that battery demand is expected to rise from 20 gigawatt-hours (GWh) in 2022 to 220 GWh by 2030. To reduce dependence on imported battery materials, the government plans to support recycling units through capital expenditure (Capex) and operational expenditure (Opex) subsidies. Incentives will be provided only to companies that successfully extract critical minerals through recycling.

According to government estimates, the scheme will help create an annual recycling capacity of 270 kilotonnes, enabling the production of nearly 40 kilotonnes of critical minerals. It is expected to attract investments worth ₹8,000 crore and generate around 70,000 direct and indirect jobs. The government is also planning 4 Critical Mineral Processing Parks and 9 Centres of Excellence while pursuing overseas mineral assets and domestic exploration projects to ensure long-term supply security. Union Minister G. Kishan Reddy said the initiative will reduce dependence on countries such as China and support the vision of Atmanirbhar Bharat.