Centre Launches ₹1,500 Crore Scheme For Battery Mineral Recycling to Support EVs

The Centre has introduced a ₹1,500 crore Critical Mineral Recycling Incentive Scheme to support circularity in the battery ecosystem and strengthen domestic raw material supply for the electric vehicle (EV) sector. The scheme was announced by the Ministry of Coal and Mines at the Battery Summit 2026. The initiative is aimed at providing direct support for the formalisation of end-of-life battery recycling and the recovery of key materials. It comes at a time when demand for energy storage and electric mobility is expanding rapidly in India.

According to G. Kishan Reddy, Union Minister of Coal and Mines, the next phase of India’s clean mobility transition will depend on building a resilient battery ecosystem anchored in the efficient recovery and processing of critical minerals within the country.

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Industry estimates indicate that annual demand for lithium-ion batteries in the country is projected to rise from 20 gigawatt-hours in 2022 to 220 gigawatt-hours by 2030, reflecting a compound annual growth rate of around 50 per cent. This growth has been accompanied by a sharp increase in imports, with lithium-ion battery imports rising from $1.2 billion in FY19 to $4.7 billion in FY26.

The scheme focuses on incentivising the extraction of materials such as lithium, cobalt and nickel from used batteries, with the aim of reducing reliance on imported inputs.

Alongside recycling efforts, the Centre is also overseeing the development of four Critical Mineral Processing Parks and nine Centres of Excellence to enhance domestic capabilities in processing and value addition.

On the resource development side, the government has undertaken more than 570 exploration projects for critical minerals since 2015 and auctioned 46 mineral blocks, nearly half of which have been finalised in the past 18 months. Internationally, efforts are also underway to secure long-term supply chains, including the acquisition of lithium assets in Argentina to support domestic battery manufacturing.