India is planning to strengthen its domestic critical minerals industry by expanding rare earth processing technology and developing a complete supply chain within the country. The initiative aims to reduce dependence on foreign suppliers and improve access to minerals that are essential for advanced manufacturing, clean energy and strategic industries.
According to Kadam Sandeep Vasant, Joint Secretary in the Ministry of Mines, the government is working to scale up rare earth processing capabilities and develop a stronger domestic ecosystem for critical minerals. The effort includes improving recycling infrastructure and supporting companies involved in recovering valuable materials from discarded products and industrial waste.
The government has introduced a ₹1,500 crore recycling scheme to encourage the recovery of critical minerals. Under the scheme, 58 companies are reportedly eligible, according to the official’s statement.
Critical minerals play an important role in manufacturing electric vehicle batteries, wind turbines, electronics, semiconductors and defence equipment. Rare earth elements are particularly important for high-performance magnets used in electric motors, renewable energy systems and several advanced technologies.
However, building a domestic supply chain requires more than access to raw materials. India also needs advanced processing facilities, recycling capacity, skilled workers and reliable technology to extract and refine these minerals efficiently.
Recycling could help India recover valuable materials from electronic waste, used batteries and industrial scrap. This can reduce waste while creating another source of minerals for manufacturers. The effectiveness of the scheme will depend on how quickly eligible companies establish or expand operations and how much material they can recover.
The initiative comes amid growing global competition to secure critical mineral supplies. By strengthening domestic processing and recycling, India aims to improve supply security and support industries that depend on these resources.
Further details about the scheme’s implementation, funding distribution and the work planned by eligible companies will help clarify its expected impact on India’s critical minerals sector.