India's pursuit of mineral self-reliance is gaining momentum, with battery scrap emerging as a potential key to unlocking a domestic supply of rare earth elements (REEs). These elements, crucial for various high-tech applications, including electric vehicles (EVs), wind turbines, and defense systems, are at the heart of India's clean energy and advanced technology ambitions.
The Imperative for Mineral Security
Geopolitical uncertainties and trade wars have underscored the importance of critical mineral security. China's export ban on rare earth magnets in April 2025, a retaliatory measure in an escalating trade war with the US, disrupted global manufacturing supply chains and highlighted the risks associated with relying on a single dominant supplier. China holds 60% of the world's rare earth mining and 90% of the world's processing capacity. This event pushed manufacturers worldwide to seek alternative supply sources. The UN Conference on Trade and Development (UNCTAD) has also pointed out the increasing export restrictions on minerals essential for the energy transition, reflecting growing geopolitical sensitivities.
Recycling as a Strategic Solution
Recognizing these vulnerabilities, India is prioritizing recycling over traditional mining to secure its rare earth supply. A multi-tiered system is being developed to process electronic waste, spent batteries, and industrial byproducts into reusable REEs. The National Critical Minerals Mission has earmarked ₹1,500 crore (approximately $180 million) for recycling innovations and infrastructure. Extended Producer Responsibility (EPR) is being embedded into law, compelling manufacturers to channel end-of-life products into formal recycling streams, thereby institutionalizing a circular economy.
Environmental and Economic Advantages of Recycling
Recycling offers significant environmental advantages over mining. It requires up to 80% less water than monazite mining and avoids the need for radioactive waste management. Economically, recycling generates a domestic source of valuable commodities, reduces import dependence, creates qualified jobs in the expanding recycling industry, and consumes less energy than refining and mining.
India's Recycling Ecosystem
India is fostering a distributed recycling network with specialized facilities targeting distinct material streams. Companies like Attero Recycling are using proprietary technology to extract precious and rare earth elements from e-waste sustainably. BatX Energies and Germany's Rocklink GmbH are collaborating to establish India's first rare earth magnet recycling ecosystem, with a pilot plant expected within a year and commercial production targeted within 24 months. Karo Sambhav, along with IIT Roorkee, is also involved in R&D projects focused on recycling NdFeB magnets to recover rare earth elements.
Potential and Challenges
India has the potential to meet a significant portion of its rare earth metal demand through recycling. Recyclekaro CEO believes that about 40% of India's rare earth metal demand can be met through recycling. A formalised battery recycling system could create 100,000 green jobs and meet nearly 40% of the country's demand for key minerals, with a potential market value of $9 billion as India's battery demand skyrockets.
However, challenges remain. Extracting REEs from e-waste can be complex. Developing efficient and cost-effective technologies for extraction and separation is crucial. Despite holding about 6% of the world's rare earth reserves, India's current production accounts for less than 1% globally.
Government Initiatives and the Path Forward
The Indian government is actively promoting the development of the rare earth industry through initiatives like the National Critical Mineral Mission. Reforms to the Mines and Minerals (Development and Regulation) Act and Production Linked Incentive schemes are encouraging private investment, research, and sustainable processing. IREL (India) Limited is playing a key role in extracting and processing rare earth oxides from monazite sands. The parliamentary standing committee on coal, mines and steel has recommended promoting 'urban mines' to recover minerals from waste streams.
By prioritizing recycling, fostering technological innovation, and implementing supportive policies, India can secure its rare earth future, reduce its dependence on imports, and emerge as a key player in the global clean energy and technology landscape.
