4 min readFeb 2, 2025 09:17 PM IST
First published on: Feb 2, 2025 at 03:19 AM IST
In a major fillip to domestic recyclers of critical minerals, the Union government has removed customs duty on the import of waste lithium-ion batteries and the scraps of 12 critical minerals including copper, tin, and molybdenum. In her Budget speech, Finance Minister Nirmala Sitharaman announced that a policy for recovery of critical minerals from mining waste will also be brought out.
The decision to remove customs duty on critical minerals scrap, a long-standing demand of the recycling industry, comes after the Ministry of Mines announced a Rs 1,500 crore incentive scheme for recycling under the National Critical Minerals Mission (NCMM) on Thursday.
With wide-ranging industrial applications, from mobile and electric vehicle (EV) batteries to power electronics and defence, critical minerals face unique supply chain challenges due to high demand and geopolitical tensions.
Now, with customs duty waived off on the scraps of critical minerals like copper, tin, molybdenum, cobalt, tungsten, cadmium, antimony, beryllium, bismuth, rhenium, tantalum, and zirconium, recyclers will be incentivised to import scrap and increase the domestic availability of such minerals.
The removal of customs duty on waste lithium-ion batteries will also allow recyclers to boost production of black mass, an active powder containing a mixture of cathode and anode materials, from which critical minerals like lithium, copper, manganese, cobalt, and nickel can be extracted. In addition to increasing raw material availability for EV battery manufacturers, the move will also benefit producers of mobile phones and other consumer electronics.
The proposed incentive scheme under the NCMM targets 400 kilotonnes (kt) of recycled material, which will be prepared in consultation with the Ministry of Finance. The mission also allocates Rs 100 crore to run pilot projects for mineral recovery. With a total outlay of Rs 16,300 crore over seven years, an estimated Rs 410 crore has been budgeted for the mission for 2025-26.
“An incentive scheme for setting up minerals recycling clusters… will identify targets for the production of recycled minerals for the medium and long-term and distribute the incentives to interested industries accordingly,” the mines ministry said in a note on the mission.
According to the ministry, removing import duties and other barriers on recyclable materials such as scrap, black mass, and e-waste “will help in ensuring a steady supply of raw materials for recycling, fostering a favourable environment for businesses to thrive and contribute to domestic value addition”.
“If any issue arises regarding the influx of unwanted e-waste, the government will take necessary measures to address and mitigate these challenges effectively. The focus will remain on building a robust recycling infrastructure that not only supports the economy but also adhere to environmental standards,” it said.
An EV battery on display. With wide-ranging industrial applications, from mobile and electric vehicle (EV) batteries to power electronics and defence, critical minerals face unique supply chain challenges. (File) 
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