This Year, Government will Introduce Incentive Programe for Critical Minerals

According to media reports, the union administration intends to introduce an incentive programme later this year to promote the recycling of 24 essential minerals, such as cobalt and lithium. According to a media outlet, the sops can be in the form of production-linked incentives (PLI) or "subsidies on capital expenditure". The plan aims to increase India's capacity to recycle lithium-ion batteries and is expected to run for four to five years. The National Critical Mineral Mission (NCMM), which has a total budget of INR 16,300 Cr, was approved by the Union Cabinet in January of this year. Accordingly, 24 minerals have been designated by the government as "critical" to achieving the nation's net zero greenhouse gas emissions goals by 2070. Additionally, INR 1,500 Cr has been allocated by the mission to provide incentives for the establishment of recycling facilities. To uncover India's vital mineral reserves, VL Kantha Rao, the secretary in the ministry of mines, made a pitch on April 8 for an exploration licence regime.

Empowering Private Entities

"Such a policy shift would shift the focus from passive ownership to active exploration," Rao said at an event in New Delhi. He also added that the regime will "empower" private entities to conduct large-scale early-stage exploration for minerals like lithium and platinum group elements (PGEs), among others. Sanjay Lohiya, the ministry's additional secretary, also affirmed that the government was committed to fostering an exploration ecosystem that was competitive, technologically advanced, and investment-friendly. The remarks take place when the Centre is making every effort to acquire vital minerals required for the switch to green energy. These metals, which are utilised in solar panels, semiconductors, cell phones, and electric vehicle (EV) batteries, are the fundamental components of contemporary technology.

Expanding India's Capacity to Recycle Lithium-ion Batteries

The programme should contribute to increasing India's annual lithium-ion battery recycling capacity from the present 75,000 metric tonnes. In February, the government eliminated customs duties on the trash and scrap of twelve essential materials, such as lithium-ion batteries and powdered lead, zinc, and cobalt, in an effort to increase availability. Some of these are necessary for the development of electric vehicles, which India is attempting to promote in order to lessen its dependency on fossil fuels. Although they only made about 2.5% of the 4.3 million cars sold in India in 2024, EV sales increased by 20% compared to just 5% for the entire auto industry. Due mostly to new launches, analysts predict that sales will quadruple to over 200,000 in 2025.