The application window to avail the scheme is now functional.
Following the Union Cabinet’s approval of the ₹1,500 crore incentive scheme for promoting critical mineral recycling on September 3, 2025, the Ministry of Mines issued scheme guidelines for implementation of the said incentive scheme on October 2, 2025. These guidelines outline the scheme’s modalities, including indicative outlays for recycling systems, incentive allocation procedures, application, evaluation, and disbursement processes, institutional mechanisms, and performance reviews. These guidelines were finalized after extensive consultations with industry and other relevant stakeholders.
The incentive scheme is a key component of the National Critical Minerals Mission and aims to develop recycling capacity in the country for the separation and production of critical minerals from secondary sources. Eligible feedstock sources include e-waste, used lithium-ion batteries (LIBs), and other scrap materials. The intended beneficiaries will be both large and established recyclers and small and new recyclers (including start-ups). The scheme will apply to investments in new units, as well as capacity expansion/modernization and diversification of existing units. The scheme incentives will be for the recycling value chain involved in the actual extraction of critical minerals, not just those involved in “black mass” production.
Black mass is a byproduct obtained from used lithium-ion batteries, containing valuable metals such as lithium, cobalt, nickel, manganese, and graphite. This “black mass” is obtained by mechanically crushing and processing the batteries during battery recycling.
Following the release of detailed guidelines, the Scheme is now open for applications for a period of six months, from October 2, 2025, to April 1, 2026. The Scheme guidelines and application link are available on the Ministry of Mines’ website.
