Why in news?
Cabinet has recently approved a ₹1,500 crore scheme as part of the National Critical Mineral Mission to develop recycling facilities for separating and producing critical minerals from secondary sources, including e-waste and lithium-ion battery scrap.
 
Policy Updates and Schemes

• The scheme will run from FY 2025-26 to FY 2030-31 and targets both established and new recyclers, including startups, promoting investment in new recycling units and expansion of existing facilities.
• Eligible materials will include e-waste, lithium-ion battery scrap, and other sources such as end-of-life vehicles.
• The government previously eliminated customs duties on imported waste and scrap materials containing critical minerals to further support recycling and supply for the EV industry.

Indian Legislative and International Action

• The Mines and Minerals (Development and Regulation) Amendment Bill, 2025, also passed recently, empowers the government to promote sustainable mining, zero-waste practices, and facilitates mineral trading, benefiting the critical minerals sector.
• India is cooperating with the International Energy Agency (IEA) to develop compliant mining practices, increase recycling capabilities, and integrate advanced technology and resource modeling.
• Offshore mineral block auctions and strategic global mineral agreements, including with Argentina and Zambia, have reinforced efforts in securing supply chains for critical minerals.

Global and Industry Developments

• Demand for critical minerals worldwide, particularly for energy transition technologies, continues to rise, with industry-focused events such as the AusIMM Critical Minerals Conference highlighting sector challenges and opportunities for meeting net-zero goals.
• ASEAN nations and the Global South are also advancing critical mineral supply chain management through coordinated policy and investment strategies.
• The role of critical mineral recycling in achieving sustainability, driving innovation, and supporting the circular economy is increasingly recognized globally, with India aiming to attract up to ₹8,000 crore in new investments and generate approximately 70,000 jobs by 2031.

About Critical mineral cycling

• Critical minerals are defined as minerals essential for economic growth, national security, and environmental sustainability,
• Critical mineral cycling refers to the movement, use, reuse, and recycling of critical minerals—such as lithium, cobalt, nickel, and rare earth elements—within natural ecosystems and human industrial systems, ensuring their responsible management and sustainable availability for key technologies and economic needs.

Challenges and Key Processes

• Many critical minerals are only found in trace amounts, often concentrated in specific regions, making their supply vulnerable to geopolitical tensions and market fluctuations.
• Current recycling technologies for critical minerals such as those in solar panels and batteries are still developing, limiting their large-scale recovery and reintegration into production cycles.
• Mining, industrial processing, use, and recycling all contribute to the anthropogenic (human-caused) flux of critical minerals in the environment, sometimes exceeding natural cycles and highlighting the need for controlled and safe management.

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