Wednesday, June 17, 2026
By Kamal Swami
India Launches Rs 1,500 Crore EV Battery Recycling Scheme
The Government of India has introduced a Rs1,500 crore Critical Mineral Recycling Incentive Scheme aimed at strengthening the domestic supply chain for electric vehicle (EV) battery materials. The initiative is designed to promote the recycling of end-of-life batteries and electronic waste while reducing the country’s dependence on imported critical minerals.
Announced during Battery Summit 2026, the scheme will provide financial support to recyclers and businesses involved in recovering valuable materials such as lithium, cobalt, nickel, and graphite from used batteries and other waste streams. The move is expected to help India build a more sustainable and localized battery manufacturing ecosystem. The government’s focus on recycling comes at a crucial time, as demand for lithium-ion batteries is projected to rise significantly over the coming years. Industry estimates suggest that India’s annual lithium-ion battery demand could increase from around 20 GWh in 2022 to nearly 220 GWh by 2030, driven by the rapid growth of electric vehicles and energy storage systems.
Currently, India relies heavily on imported battery cells and raw materials. Rising imports have highlighted the need for a secure and self-reliant supply chain. By encouraging the recovery of critical minerals from spent batteries and e-waste, the government aims to reduce import dependence while supporting the circular economy. The recycling incentive scheme is also aligned with the broader objectives of the National Critical Mineral Mission, which seeks to improve the availability of strategic minerals required for clean energy technologies, electric mobility, and advanced manufacturing. The program is expected to attract investment in recycling infrastructure, create employment opportunities, and encourage technological innovation in material recovery processes.
Experts believe that developing a strong domestic recycling ecosystem will not only improve resource security but also reduce environmental impacts associated with mining and waste disposal. As India accelerates its transition toward electric mobility, initiatives like this could play a key role in ensuring a sustainable and resilient battery supply chain for the future.
