Archive · 25 Nov 2025
India Advances Critical Mineral Recycling and Rare Earth Magnet Schemes
India is working on two big plans to make important materials at home.
First, there's a ₹1,500 crore plan to recycle things like old batteries and electronics to get useful minerals.
Many companies have already shown interest, and the government is helping them through workshops and support.
Second, the government is about to approve a ₹7,300 crore plan to make special magnets needed for electric cars, defense, and green energy.
These magnets are mostly made in China, so India wants to make its own.
The plan will run for seven years and aims to make 6,000 tonnes of these magnets every year.
Both plans are important for making India less dependent on other countries for these materials.
Union Commerce and Industry Minister Piyush Goyal reviewed the progress of the ₹1,500 crore Incentive Scheme for Critical Mineral Recycling, aimed at developing recycling capacity for minerals from E-waste and spent Lithium-ion Batteries.
The scheme was approved by the Union Cabinet on 03.09.2025 and launched on 02.10.2025, with applications open until 01.04.2026.
JNARDDC, the Project Management Agency, has conducted workshops and consultations to support stakeholders in the application process.
The Union Cabinet is likely to approve the ₹7,300 crore Rare Earth Permanent Magnets (REPM) Manufacturing Incentive Scheme, aiming to establish a domestic manufacturing ecosystem with an annual production capacity of 6,000 tonnes over seven years.
The REPM scheme aims to reduce dependency on imports, particularly from China, and develop a homegrown value chain for critical components used in electric vehicles, defense systems, and renewable energy technologies.
- Who
- Union Commerce and Industry Minister Piyush Goyal, Secretary of Ministry of Mines, Jawaharlal Nehru Aluminium Research, Development and Design Centre (JNARDDC), Ministry of Heavy Industries
- What
- Review of the progress of the ₹1,500 crore Incentive Scheme for Critical Mineral Recycling and the upcoming ₹7,300 crore Rare Earth Permanent Magnets (REPM) Manufacturing Incentive Scheme
- When
- Review on Tuesday, expected Cabinet approval for REPM scheme on Wednesday
- Where
- India
- Why
- To develop domestic recycling capacity for critical minerals and establish an indigenous manufacturing ecosystem for rare earth permanent magnets, reducing dependency on imports and enhancing self-sufficiency
- Scheme Name
- Incentive Scheme for Critical Mineral Recycling
- Budget
- ₹1,500 crore
- Approval Date
- 03.09.2025
- Launch Date
- 02.10.2025
- Application Period
- 02.10.2025 – 01.04.2026
- Project Management Agency
- Jawaharlal Nehru Aluminium Research, Development and Design Centre (JNARDDC)
- Scheme Name
- Rare Earth Permanent Magnets (REPM) Manufacturing Incentive Scheme
- Budget
- ₹7,300 crore
- Expected Approval Date
- Wednesday (following Tuesday's review)
- Implementation Period
- 7 years
- Annual Production Capacity
- 6,000 tonnes
- Implementing Ministry
- Ministry of Heavy Industries
- Capital Expenditure
- ₹6,500 crore
- Operational Costs
- ₹800 crore
- Domestic Demand (2024)
- 4,010 tonnes annually
- Projected Demand (2030)
- 8,220 tonnes annually
- Rare Earth Reserves
- 6.9 million metric tonnes
- Domestic Production (2024)
- 2,900 tonnes
- Imports (FY25)
- 53,000 tonnes
