{"id":53290,"date":"2025-09-06T18:52:55","date_gmt":"2025-09-06T13:22:55","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=53290"},"modified":"2025-09-06T18:53:06","modified_gmt":"2025-09-06T13:23:06","slug":"scheme-to-promote-critical-mineral-recycling","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/current-affairs\/06-09-2025\/scheme-to-promote-critical-mineral-recycling","title":{"rendered":"Scheme to Promote Critical Mineral Recycling in the Country"},"content":{"rendered":"\n<p><strong>Syllabus: GS3\/ Economy<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Context<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The Union Cabinet chaired by PM Modi approved a <strong>Rs.1,500 crore <\/strong>Incentive Scheme to develop recycling capacity in the country for the separation and production of critical minerals from secondary sources.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>What are Critical Minerals?<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>These are minerals that are <strong>essential for economic development and national security.<\/strong><\/li>\n\n\n\n<li>The lack of availability of these minerals or the concentration of extraction or processing in a few geographical locations could potentially lead to \u201c<strong>supply chain vulnerabilities and even disruption of supplies\u201d.<\/strong><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>List of Critical Minerals<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Different countries have their own unique lists <\/strong>of critical minerals based on their specific circumstances and priorities.<\/li>\n\n\n\n<li><strong>A total of 30 minerals were found to be most critical for India,<\/strong> out of which two are critical as fertilizer minerals: Antimony, Beryllium, Bismuth, Cobalt, Copper, Gallium, Germanium, Graphite, Hafnium, Indium, Lithium, Molybdenum, Niobium, Nickel, PGE, Phosphorous, Potash, REE, Rhenium, Silicon, Strontium, Tantalum, Tellurium, Tin, Titanium, Tungsten, Vanadium, Zirconium, Selenium and Cadmium.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Applications of Critical Minerals<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Clean technologies initiatives<\/strong> such as zero-emission vehicles, wind turbines, solar panels etc.\n<ul class=\"wp-block-list\">\n<li>Critical minerals such as Cadmium, Cobalt, Gallium, Indium, Selenium and Vanadium and have uses in <strong>batteries, semiconductors, solar panels<\/strong>, etc.<\/li>\n\n\n\n<li><strong>Electric vehicles (EVs): <\/strong>Lithium, nickel, and cobalt are key materials used in lithium-ion batteries.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Advanced manufacturing inputs and materials<\/strong> such as defense applications, permanent magnets, ceramics.\n<ul class=\"wp-block-list\">\n<li>Minerals like Beryllium, Titanium, Tungsten, Tantalum, etc. have usage in new technologies, electronics and defense equipment.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Platinum Group Metals (PGMs) <\/strong>are used in medical devices, cancer treatment drugs, and dental materials.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>About the Scheme to Develop Recycling Capacity<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>This scheme is part of the <strong>National Critical Mineral Mission (NCMM).<\/strong><\/li>\n\n\n\n<li>The Scheme will have a <strong>tenure of six years from FY 2025-26 to FY 2030-31<\/strong>.&nbsp;<\/li>\n\n\n\n<li><strong>The eligible feedstock is<\/strong> Electronic-waste, Lithium Ion Battery (LIB) scrap, and scrap other than e-waste &amp; LIB scrap e.g. catalytic converters in end-of-life vehicles.&nbsp;<\/li>\n\n\n\n<li><strong>Expected beneficiaries<\/strong> will be both large, established recyclers, as well as small, new recyclers (including start-ups), for whom one-third of the scheme outlay has been earmarked.&nbsp;<\/li>\n\n\n\n<li><strong>The Scheme will be applicable<\/strong> to investments in new units as well as expansion of capacity \/ modernization and diversification of existing units.&nbsp;<\/li>\n\n\n\n<li><strong>The incentives <\/strong>under the Scheme will comprise;\n<ul class=\"wp-block-list\">\n<li><strong>20% Capex subsidy <\/strong>on plant &amp; machinery, equipment and associated utilities for starting production within specified timeframe, beyond which reduced subsidy applicable; and&nbsp;<\/li>\n\n\n\n<li><strong>Opex subsidy: <\/strong>Linked to incremental sales beyond FY 2025\u201326 base year, with 40% disbursed in year 2 and 60% in year 5.<\/li>\n\n\n\n<li><strong>Ceilings: <\/strong>\u20b950 crore per entity for large players (\u20b910 crore cap on Opex); \u20b925 crore for small entities (\u20b95 crore cap on Opex).<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full is-resized\"><img data-dominant-color=\"e7e6e7\" data-has-transparency=\"false\" loading=\"lazy\" decoding=\"async\" width=\"494\" height=\"456\" src=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/09\/CMM-COMPONENTS-PIC-1.png\" alt=\"CMM-COMPONENTS-PIC\" class=\"not-transparent wp-image-53295\" style=\"--dominant-color: #e7e6e7; width:410px;height:auto\" srcset=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/09\/CMM-COMPONENTS-PIC-1.png 494w, https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/09\/CMM-COMPONENTS-PIC-1-300x277.png 300w\" sizes=\"auto, (max-width: 494px) 100vw, 494px\" \/><\/figure>\n<\/div>\n\n\n<h2 class=\"wp-block-heading\"><strong>Need for the Critical Mineral Recycling<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Waste generation: <\/strong>India\u2019s <strong>e-waste generation<\/strong> is poised to surge, driven by rapid growth in solar and wind energy infrastructure and <strong>EV adoption.<\/strong>\n<ul class=\"wp-block-list\">\n<li>The PV module waste will increase from <strong>100 kilotons in FY23 to 340 kilotons by 2030.<\/strong> Additionally,<strong> 500 kt of EV batteries<\/strong> are expected to reach recycling units in the coming years.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Scarce reserves:<\/strong> Manufacturing renewable energy technologies and transition to electric vehicles would require increasing quantities of minerals, including copper, manganese, zinc, and indium.\n<ul class=\"wp-block-list\">\n<li>India possesses rare earth deposits, particularly in <strong>Rajasthan and coastal regions<\/strong>, but mining, processing, and refining technologies remain underdeveloped.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Chinese Dominance in the Supply Chain:<\/strong> China controls <strong>60\u201370%<\/strong> of global rare earth production and<strong> 85\u201390%<\/strong> of refining, giving it near-monopoly from extraction to high-performance magnets.\n<ul class=\"wp-block-list\">\n<li>The recent <strong>export curbs<\/strong> on key rare earths highlighted India\u2019s vulnerability and the need to build domestic recycling capacity.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Environmental concerns<\/strong>, regulatory hurdles, and lack of advanced separation and refining capacity further restrict exploitation of primary sources.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Challenges in Critical Mineral Recycling<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Technology gaps: <\/strong>Limited domestic expertise in advanced recycling processes for rare earths and lithium.<\/li>\n\n\n\n<li><strong>Environmental risks: <\/strong>Safe handling of toxic waste and emissions from recycling units remain concerns.<\/li>\n\n\n\n<li><strong>Regulatory hurdles:<\/strong> Delays in approvals and lack of streamlined norms hinder quick adoption.<\/li>\n\n\n\n<li><strong>Infrastructure deficits:<\/strong> Limited specialized recycling units and inadequate collection networks.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Suggestions<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Strengthen R&amp;D and technology transfer<\/strong> for efficient mineral extraction from waste.<\/li>\n\n\n\n<li><strong>Promote PPPs and start-up participation<\/strong> to expand recycling ecosystems.<\/li>\n\n\n\n<li><strong>Build integrated collection and processing networks<\/strong> for e-waste and battery scrap.<\/li>\n\n\n\n<li><strong>Ensure strict environmental safeguards<\/strong> to avoid secondary pollution.<\/li>\n\n\n\n<li><strong>Skill development programmes<\/strong> to create a trained workforce in recycling and waste management.<\/li>\n<\/ul>\n\n\n\n<p><strong>Source: <\/strong><a href=\"https:\/\/www.pib.gov.in\/PressReleasePage.aspx?PRID=2163454\" rel=\"nofollow noopener\" target=\"_blank\"><strong>PIB<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<h3><strong>Context<\/strong><\/h3>\n<li class=\"ms-5\">The Union Cabinet chaired by PM Modi approved a Rs.1,500 crore Incentive Scheme to develop recycling capacity in the country for the separation and production of critical minerals from secondary sources.<\/li>\n<p><\/p>\n<h3><strong>What are Critical Minerals?<\/strong><\/h3>\n<li class=\"ms-5\">These are minerals that are essential for economic development and national security.<\/li>\n<li class=\"ms-5\">The lack of availability of these minerals or the concentration of extraction or processing in a few geographical locations could potentially lead to \u201csupply chain vulnerabilities and even disruption of supplies\u201d.<\/li>\n<p><a href=\"https:\/\/www.nextias.com\/ca\/current-affairs\/06-09-2025\/scheme-to-promote-critical-mineral-recycling\" class=\"btn btn-primary btn-sm float-end\">Read\u00a0More<\/a><\/p>\n","protected":false},"author":15,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-53290","post","type-post","status-publish","format-standard","hentry","category-current-affairs"],"acf":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/53290","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=53290"}],"version-history":[{"count":3,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/53290\/revisions"}],"predecessor-version":[{"id":53327,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/53290\/revisions\/53327"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=53290"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=53290"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=53290"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}