India will introduce incentives this year to encourage the recycling of 24 important minerals, including lithium and cobalt, which are critical to its green energy transition. The government has selected these minerals as critical to accomplishing clean energy targets and reaching net-zero emissions by 2070.
Recycling efforts will receive ₹15 billion as part of a ₹163 billion program to improve the vital minerals sector. According to sources, the incentives could include capital investment subsidies or production-linked perks, but final specifics have yet to be released. The funds will be used over a four to five-year period to improve the sector.
The effort intends to increase India’s lithium-ion battery recycling capacity, which currently stands at 75,000 metric tons per year. To increase availability, the government removed customs charges on trash and scrap of critical minerals such as lead, zinc, cobalt powder, and lithium-ion batteries in February.
These minerals are essential for the development of EVs, which India is promoting to lessen its reliance on fossil fuels. EV sales contributed only 2.5% of the 4.3 million vehicles sold in 2024, but they increased by 20% compared to the overall car market’s 5% rise.
