Critical Mineral Recycling

The Ministry of Mines in India is gearing up to introduce a Production Linked Incentive (PLI) scheme aimed at enhancing the recycling of critical minerals. This initiative comes in response to a tepid response observed in recent auctions of critical mineral blocks. The scheme aligns with recommendations from NITI Aayog and complements the Battery Waste Management Rules (BWMR), 2022.

What is Critical Mineral Recycling?

• Critical mineral recycling involves the extraction and reuse of essential minerals like lithium, cobalt, and graphite from electronic waste (e-waste) and spent batteries.
• These minerals are vital components in technologies such as solar panels, wind turbines, energy storage systems, electric vehicles (EVs), and consumer electronics.
• Challenges
  • Indian recyclers currently face challenges in extracting battery-grade minerals from e-waste, highlighting the need for capacity-building initiatives.
  • The scheme aims to address these challenges by providing incentives based on the type and value of minerals recycled, thereby encouraging innovation and technological advancements in the recycling sector.

How will the proposed PLI Scheme help?

• The proposed PLI scheme aims to foster a circular economy by reducing reliance on virgin ores and promoting sustainable practices.
• It targets enhancing domestic supply chains for critical minerals, thereby boosting India’s self-reliance in clean energy technologies and reducing environmental impacts associated with mining.
• The PLI scheme is designed to incentivize the production of recycled critical minerals through advanced recycling technologies and infrastructure investments. It seeks to encourage the recovery of high-purity minerals suitable for reuse in primary inputs.

What is the need?

• Increasing demand: The growing demand for critical minerals is sustaining supply to meet the anticipated boom. The IEA predicts that meeting future demand will require doubling current mineral inputs for clean energy technology by 2040.
• Critical Minerals forms part of multiple strategic value chains, including 
  • Clean technologies initiativessuch as zero-emission vehicles, wind turbines, solar panels
  • Information and communication technologies, including semiconductor
  • Advanced manufacturing inputs and materials such as defence applications, permanent magnets, and ceramics
• Green commitments: India’s international commitments towards reducing carbon emissions, which require the country to urgently relook at its mineral requirements for energy transition and net-zero commitments. While the clean energy transition will undoubtedly require greater mining, recycling will play a role in sustaining future mineral supply.