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The Union government is set to roll out a policy to develop a domestic processing value chain for battery minerals within the next three months, as India seeks to reduce its dependence on imported critical minerals and strengthen domestic manufacturing of electric vehicles (EVs), battery storage systems and clean energy technologies.
Speaking at a Material Recycling Association of India (MRAI) Conference on India’s Critical Minerals Recycling Landscape on June 23, Mines Secretary Piyush Goyal said the Union Ministry of Mines is in the final stages of designing a scheme to support battery mineral processing.
“We are now very close to finalising a scheme for the processing value chain for battery minerals,” Goyal said, adding that the proposal is expected to secure approval within three months.
The proposed scheme is expected to address one of the biggest gaps in India’s critical minerals ecosystem. While the country has stepped up overseas acquisitions of critical mineral assets and accelerated domestic exploration, processing remains a weak link in the supply chain, limiting India’s ability to convert raw minerals into battery-grade materials and advanced components.
The move comes at a time when India’s EV industry is becoming increasingly dependent on access to critical minerals and advanced materials. A report released on June 23 by the Institute for Energy Economics and Financial Analysis (IEEFA) and JMK Research & Analytics found that although India could achieve 90-100 per cent localisation in several EV component categories by 2030, deeper domestic value creation will remain difficult without local capabilities in semiconductors, rare-earth magnets and other critical materials.
The report, Beyond Battery Packs: Localisation in Manufacturing EV Components, noted that EV-specific systems such as motors, power electronics, thermal systems, chargers and control units account for a significant share of vehicle value and represent major opportunities for localisation. However, key inputs continue to be imported.
Against this backdrop, Goyal said recycling would become an increasingly important source of critical minerals for India.
The government’s Rs 1,500 crore incentive scheme for recovery of critical minerals from secondary resources has attracted commitments far beyond expectations. Against a target of 270 kilotonnes of recycling capacity, the ministry received commitments for 850 kilotonnes and approved 58 recyclers under the programme.
“I am personally very optimistic that by 2030 India would become a major hub of critical mineral recycling, not just for Asia, but a major global hub by the next decade,” Goyal said.
Launched under the National Critical Mineral Mission, the scheme aims to recover lithium, cobalt, nickel, graphite and other strategic minerals from end-of-life batteries, electronic waste and industrial scrap, helping reduce India’s import dependence.
The secretary said recycling could eventually meet a substantial share of domestic demand for certain critical minerals, particularly those required in relatively smaller quantities for strategic sectors such as defence and space.
Industry experts say the recycling push could also help address vulnerabilities identified in India’s EV manufacturing ecosystem. According to the IEEFA-JMK report, eight of the twelve major EV component categories assessed still depend on critical subcomponents that are not produced domestically, including semiconductors and rare-earth magnets.
The report found that traction motors currently have localisation levels of only 50-60 per cent because India remains fully dependent on imported rare-earth magnets, while motor controller units and vehicle control units continue to rely heavily on imported semiconductors and printed circuit boards.
“Several EV component categories could be manufactured domestically over the coming years. However, the extent to which this translates into domestic value creation will depend on the development of capabilities in upstream materials, electronics and component supply chains,” said Rahul Maity, Consultant at JMK Research & Analytics and lead author of the report.
The report noted that recent investments are increasingly concentrated in powertrain systems, power electronics and charging infrastructure, historically among the most import-dependent segments of India’s EV ecosystem. Several of these categories could achieve near-complete localisation by 2030 if announced projects are successfully commissioned.
However, significant challenges remain. China controls around 90 per cent of global rare-earth magnet production, while semiconductor manufacturing remains concentrated in Taiwan and East Asia. The report identifies dependence on rare-earth magnets and semiconductors as the two most critical risks facing India’s localisation efforts.
“Several factors could influence future localisation outcomes, including access to critical materials, cost competitiveness relative to established manufacturing hubs, supplier scale, component standardisation and the development of domestic technology capabilities,” said Charith Konda, Energy Specialist at IEEFA and co-author of the report.
To address some of these challenges, the Union Ministry of Mines is also working on a nationwide collection mechanism for end-of-life batteries and electronic waste. Goyal said the government is developing a pilot framework and a unified digital platform to connect recyclers and facilitate collection of products containing critical minerals.
The recycling initiative complements a broader expansion of domestic mining and exploration. Goyal said India operationalised 36 mines, including 28 greenfield projects, in 2025-26 and expects another 50-60 greenfield mines to become operational this year. The Geological Survey of India has completed 571 critical mineral exploration projects, while another 300 have been launched this year. The government aims to exceed 2,000 exploration projects by 2031.
At the conference, Sanjay Mehta, President of the Material Recycling Association of India, said recycling must become a core pillar of India’s resource security strategy.
“Urban mines are becoming as important as natural mines,” Mehta said. “Used batteries, solar panels, permanent magnets and other end-of-life products contain enormous quantities of valuable critical minerals waiting to be recovered.”
Mehta noted that India’s emergence as a major EV, electronics and renewable energy market will generate growing volumes of recyclable material in the coming years, creating a significant domestic source of critical minerals. He also called for the establishment of a dedicated authority to oversee recycling and circular economy activities.
The IEEFA-JMK report echoed the need for stronger domestic capabilities. “Accelerating development of semiconductor and rare-earth magnet supply chains, expanding participation of EV startups in localisation programmes, promoting greater component standardisation and increasing investment in indigenous research and development all have a role to play,” said Prabhakar Sharma, Senior Consultant at JMK Research & Analytics and co-author of the report.