India To Launch Incentives For Recycling Of Critical Minerals

(MENAFN- KNN India) New Delhi, Apr 9 (KNN) India is set to introduce incentives later this year aimed at boosting the recycling of 24 critical minerals, including lithium and cobalt.

These efforts are part of the country's strategy to secure the essential materials needed for its transition to clean energy.

The 24 minerals, identified as critical for India's clean energy goals and net-zero emissions target by 2070, will receive financial backing through incentives.

The government has already earmarked Rs 1,500 crore for recycling these minerals, as part of a broader Rs 16,300 crore initiative to develop the sector.

These incentives could include subsidies on capital expenditure or production-linked benefits, according to sources familiar with the plan.

The funds, which will be spread over four to five years, are expected to kickstart the recycling industry. One significant target is to expand India's lithium-ion battery recycling capacity, which currently stands at 75,000 metric tons annually.

This will be crucial for meeting the growing demand for raw materials used in electric vehicle (EV) production.

In February, the Indian government also removed customs duties on the waste and scrap of key minerals, including lead, zinc, cobalt powder, and lithium-ion batteries.

This move is expected to further enhance the availability of these minerals, which are essential for EVs and the broader push to reduce reliance on fossil fuels.

Electric vehicle sales in India have seen growth, with EVs accounting for 2.5 per cent of the 4.3 million cars sold in 2024, up 20 per cent from the previous year.

Analysts project that sales will continue to rise in 2025, supported by new vehicle launches, as the country strives to expand its clean energy sector.

(KNN Bureau)

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