Critical mineral recycling: Govt plans PLI scheme to boost circular economy
- The Ministry of Mines is in the initial stages of designing a Production Linked Incentive (PLI) scheme to boost the recycling of critical minerals in India.
- This move aims to foster a circular economy and bolster domestic supply chains, following a lackluster response to recent auctions of critical mineral blocks.
Highlights:
- The proposed PLI scheme aligns with policy recommendations from NITI Aayog and complements the Battery Waste Management Rules (BWMR), 2022, which mandate phased recycling of used electric vehicle (EV) lithium-ion batteries from 2026 onwards.
- The PLI scheme, while yet to be finalized, will target e-waste recycling– often referred to as “urban mining”– to recover critical minerals such as lithium, copper, cobalt, graphite, chromium, and silicon.
- These minerals are crucial for clean energy technologies like solar PV modules, wind turbines, energy storage systems, and EVs, as well as consumer electronics. Feedback from MNRE and MHI is vital, given MNRE’s role in solar and wind energy policies and MHI’s involvement in the development of the EV ecosystem.
- Similar to other PLI schemes, the one under consideration by the Mines Ministry will incentivise production of recycled critical minerals for secondary use and promote investment in advanced recycling technologies and infrastructure.
- The quantum of incentive is likely to vary based on the type and value of minerals recycled.
- Some recyclers argue the scheme should benefit only those extracting high-purity critical minerals suitable for reuse as primary inputs.
- India’s e-waste generation is poised to surge, driven by rapid growth in solar and wind energy infrastructure and EV adoption. Industry estimates project solar PV module waste to jump from 100 kilotons (kt) in FY23 to 340 kt by 2030.
- Additionally, 500 kt of EV batteries are expected to reach recycling units in the coming years. Research indicates that recycling critical minerals can significantly reduce the need for virgin ores and new mines.
- The think tank also recommended the consideration of key parameters for developing such an incentive, including the cell chemistry or minerals and metals being recovered, recovery efficiency of recycled minerals and metals, and benchmarks for domestic utilization of recovered minerals and metals.
- The need to incentivise the growth of critical mineral recycling has become all the more urgent after most critical mineral blocks offered by the Mines Ministry failed to pass the technical bids stage, which requires at least three eligible bidders.
- This indicates a lack of investor interest in domestic mining of critical minerals.
Prelims Takeaway:
- Critical Minerals
- PLI Scheme