Critical Minerals Recycling Incentive Plan
Critical minerals recyclers are expressing caution regarding the newly announced incentive plan by the government aimed at bolstering the sector.
Key Challenges
- The informal e-waste collection system is a significant hurdle.
- Lack of a robust supply chain complicates the establishment of a critical mineral extraction ecosystem.
- The current export of over 90% of black mass results in a loss of critical metals extraction within the country.
- Uncertainty about the source and quality of feedstock for recyclers.
- Absence of technology and a skilled workforce presents significant barriers.
Incentive Plan Details
- The mines ministry announced ₹1,500 crore in incentives for recycling critical minerals.
- Firms are eligible for a maximum incentive of ₹50 crore under this scheme.
Future Outlook and Expectations
- The scheme aims to process about 50% of the country's black mass output domestically in the next two to three years.
- The extraction of crucial elements such as lithium, nickel, and cobalt from end-of-life batteries and gadgets is expected to increase.
- Recyclers anticipate building capacity to meet at least 50% of the country’s demand for critical minerals over the next decade.
Recommendations
- Acquisition of relevant technology for extracting and processing critical minerals is essential.
- The cap of ₹50 crore per beneficiary may need to be increased for effective implementation.
