Critical Mineral Recycling Scheme

The Union mines ministry has outlined strategies to ensure feedstock availability for the critical mineral recycling scheme. This will be managed through the formalization of collection processes under the Extended Producer Responsibility (EPR) framework.

Integration of Waste

• The integration of waste into the recycling ecosystem is expected to benefit local critical mineral recyclers.
• The domestic industry has voiced concerns over: 
  • Informal feedstock collection.
  • Technology and skill gaps.
  • Caps on incentives.
• A ₹1,500 crore incentive scheme for critical mineral recycling was approved in September, with applications opening this month.

EPR Framework and Waste Management

• The EPR framework mandates the extraction of specified end-products from e-waste and battery waste.
• The capacity to process black mass in the country is limited, leading to exports without extracting critical minerals.

Incentives and Industry Participation

• The scheme aims to encourage participation from more recyclers, including dismantlers, crushers, and shredders.
• Several private recycling firms are already operating efficient scrap collection systems.

Feedstock Categorization

• Feedstock includes e-waste, spent lithium-ion batteries (LIBs), and catalytic converters from end-of-life vehicles.
• Annual e-waste generation in India is about 1.75 million tonnes, with spent LIBs at approximately 60 kilotonnes.
• The elimination of customs duty on LIB scrap in the Union budget 2025-26 will aid imports.

Future Outlook

• The availability of waste products is expected to increase substantially over the next 4-5 years.
• The ministry does not foresee issues with sourcing feedstock for recycling under the scheme.