Updated On:
Jun 18, 2026 | 08:53 AM IST
Summary
EV Battery Recycling: The Central Government has also taken a special step. Let us tell you that the government has announced the launch of Critical Mineral Recycling Incentive Scheme of Rs 1,500 crore.
EV Battery Recycling (Source. Gemini)
Expansion
Battery Recycling Scheme: The demand for electric vehicles is continuously increasing in India. Meanwhile, the Central Government has also taken a special step. Let us tell you that the government has announced the launch of Critical Mineral Recycling Incentive Scheme of Rs 1,500 crore. If we talk about this scheme, its clear objective is to extract precious minerals from old lithium-ion batteries and reuse them so that the dependence on foreign countries in battery manufacturing can be reduced. Let us tell you that the information about this scheme was given by the Ministry of Coal and Mines during the Battery Summit 2026. Regarding which experts believe that this step can take India far ahead in the EV battery supply chain.
New treasure will emerge from old batteries
According to the information that has come out so far, important minerals like lithium, cobalt and nickel are present in lithium-ion batteries. The use of these minerals is very important for making batteries of electric vehicles. However, it is being seen that India imports a large part of these, due to which dependence on foreign markets remains. But now the government wants that the used batteries should be recycled scientifically and the minerals present in them should be used again in production. Due to which the availability of raw materials will increase and import costs will also be reduced.
Tremendous surge in demand for EV
If we look at India’s electric vehicles market, it is growing rapidly. According to many industry estimates, the demand for lithium-ion batteries in the country was around 20 GWh in 2022 which could reach 220 GWh by 2030. Which simply means that the need for batteries may increase manifold in the coming years. In such a situation, due to increasing demand, battery imports can also increase rapidly. If we look at the financial year 2018-19, lithium-ion batteries worth about $ 1.2 billion were imported, whereas in 2025-26 this figure reached $ 4.7 billion.
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Government’s focus: Self-reliant battery ecosystem
Regarding this, Union Coal and Mines Minister G Kishan Reddy said that India needs to develop a strong and self-reliant battery ecosystem. He said that increasing cycling capacity will ensure sustainable supply of critical raw materials and reduce supply chain risks. At the same time, the government is not limited to recycling only. Under this, a plan is also being made to establish four critical mineral processing parks and nine centers of excellence.
Also read: New Citroen e-C3X launched for just Rs 6 lakh, you will have to pay separately for the battery
Why is this scheme important for India’s EV future?
Looking at this entire matter, experts say that if India is successful in reusing the minerals extracted from batteries, it will not only reduce the import bill but will also present the country as a strong player in the global EV supply chain.
