Introduction

As India struggles with a shortage of critical minerals essential for the production of Lithium-ion (Li-ion) batteries and other electronic devices, Recycling emerges as a beacon of hope. The lukewarm response to the auctions of critical mineral blocks has highlighted the need for alternative sources. Urban miners, specifically recyclers, could play a pivotal role in meeting the demand for cobalt, lithium, and nickel in the country. Legislation in the form of a Productivity Linked Investment (PLI) scheme is on the horizon, aimed at strengthening the recycling of these vital minerals.

The Promise of a Circular Economy

• A PLI Scheme dedicated to the recycling of critical minerals is a step towards creating a circular economy.
• By incentivizing recyclers to extract maximum Secondary Metals from end-of-life Li-ion batteries, India can significantly reduce its dependence on imported minerals.
• The Global E-waste Monitor 2024 underscores the importance of recycling: in 2022, recycling prevented the extraction of 900 million tonnes of primary ore globally, reclaiming materials worth billions of dollars and avoiding substantial CO2 emissions.

Boosting Domestic Extraction

• India’s lack of critical mineral reserves makes the PLI scheme a necessary intervention.
• The CEO and Co-founder of Attero, an electronic waste and battery recycling company, emphasizes the broader agenda of recycling.
• He advocates for incentives to be given to companies with high efficiency and extraction rates. Attero’s patented technology boasts a 98% extraction efficiency, making it a benchmark for the industry.
• He believes that companies developing extraction technology domestically should receive additional support.

Supporting Innovation and Small Players

• Bengaluru-based MiniMines, a start-up , has developed a water and energy-efficient hybrid hydrometallurgy process to extract rare metals from Li-ion battery waste.
• With an extraction efficiency of 96%, they hope to benefit from the PLI scheme.
• Despite financial constraints compared to larger companies, their innovative technology and efficiency should not be overlooked.
• MiniMines recently received a $100,000 grant from ACT, an Indian venture philanthropy platform supporting clean tech solutions.

A Comprehensive Approach

• Experts suggest that alongside the PLI scheme, the government should mandate EV battery manufacturers to use a percentage of secondary raw minerals in new batteries, as outlined in the Battery Waste Management Rules.
• This mandate, coupled with incentives, would further boost the recycling industry and ensure that critical minerals extracted in India remain within the country, reducing the need for imports.

The Environmental Imperative

• Recycling Li-ion batteries not only addresses the critical mineral shortage but also significantly mitigates environmental impacts.
• The improper disposal of batteries can lead to hazardous chemicals leaching into the soil and water, posing severe health and environmental risks.
• Formal recycling processes help contain these dangers and ensure safe handling of toxic materials.
• By promoting recycling, India can address these environmental concerns while securing a steady supply of necessary minerals.

Economic Opportunities

• The PLI scheme and related initiatives could spur economic growth by fostering a robust recycling industry.
• This sector could generate substantial employment opportunities across various skill levels, from manual labor in dismantling and sorting to high-tech roles in research and development.
• Moreover, a thriving recycling industry could attract international investment and position India as a leader in sustainable practices.

Technological Advancements

• Investment in recycling technologies can lead to significant advancements in the efficiency and effectiveness of mineral extraction processes.
• Continuous innovation is essential for improving yield rates and reducing operational costs.
• India’s emphasis on developing indigenous technologies, as seen with companies like Attero and MiniMines, showcases the potential for homegrown solutions to global challenges.

Conclusion

Recycling critical minerals from end-of-life Li-ion batteries presents a viable solution to India’s mineral shortage. The proposed PLI scheme, along with additional mandates and incentives, could transform recyclers into crucial urban miners, fostering a self-sufficient and sustainable supply chain for critical minerals. This strategic move would not only support domestic manufacturers but also contribute significantly to global environmental goals.