India’s critical mineral supply chain has a geometry problem. The geology is real-the Reasi lithium block in Jammu & Kashmir alone holds an inferred resource of 5.9 million tonnes. But as KPMG noted in its pre-budget brief in January 2026, primary mining carries a long gestation period. Auctions, permitting, infrastructure, and commissioning mean domestic virgin supply is still years away. In the interim, there is only one path that can deliver battery-grade lithium, cobalt, nickel, and graphite to Indian cell manufacturers at speed: recycling.
That context makes Budget 2026-27 consequential for every stakeholder in the energy transition. This includes OEMs building EV supply chains to investors evaluating cleantech assets.
What the Budget Actually Delivered
The National Critical Mineral Mission (NCMM), launched by the Union Cabinet in January 2025 with a seven-year outlay of ₹34,300 crore, received a budget allocation of ₹440 crore in FY27, up from ₹410 crore in the previous budget estimate. The headline number sounds modest, but the structure beneath it matters more than the figure.
Most directly relevant for recyclers: the ₹1,500 crore Incentive Scheme for Critical Mineral Recycling – approved by the Cabinet in September 2025 as part of NCMM – combines a 20% capex subsidy on plant and machinery with a stepped opex subsidy linked to incremental sales. Crucially, one-third of the scheme’s outlay is ring-fenced for small and new recyclers, including startups. Eligible feedstocks cover lithium-ion battery scrap, e-waste, and end-of-life vehicle components. That framework directly targets the segment where MiniMines operates.
The Budget also raised the PLI-ACC allocation to ₹86 crore for FY27 against ₹26 crore the previous year – a more than threefold increase – and extended customs duty exemptions to capital goods used in lithium-ion cell manufacturing. Both measures are designed to pull domestic demand for battery-grade materials, which in turn creates a structural market for recycled critical minerals.
What Still Needs to Move
The allocations signal intent. Execution requires more. As an operating recycler processing end-of-life lithium-ion batteries through our proprietary Hybrid Hydrometallurgy (HHM™) process, MiniMines sees three gaps that policy alone cannot close without industry partnership.
First, GST on battery scrap remains an operational friction point. Second, the collection infrastructure under Battery Waste Management Rules and EPR needs scale and formality, recovered material is only as consistent as the collection system feeding it. Third, the NCMM’s recycling targets – 400 kilotonnes of recovered material which require anchor offtake commitments from ACC PLI beneficiaries to make the investment case for recyclers bankable.
The Recycler’s Angle
Analyst reports can model the policy. Operating companies live it. At MiniMines, the Budget’s direction is encouraging. A domestic supply chain built on circularity, where spent batteries in Bengaluru become battery-grade nickel sulphate for a cell plant in Pune, is no longer a thought experiment. With the NCMM recycling scheme now active and PLI-ACC scaling, the infrastructure for that loop is being built.
The question for 2026 is not whether recycling is strategic. The Budget has answered that. The question is whether the sector can move fast enough to meet the demand that India’s EV and energy storage ambitions will create by 2030.
