By Sachin Maheshwari
Demand for critical materials like lithium, cobalt, and nickel continues to rise, as these critical minerals are essential to batteries, electronics, and clean energy infrastructure. Yet the predominant model of their lifecycle remains linear at present: mine, consume, discard.
A linear model is no longer resilient. The real challenge today isn’t just about geological reserves but also about access and consistency. The ability to recover these minerals from used batteries, electronics, and industrial waste is becoming a defining feature of leadership in today’s multi-polar global economy.
India, with its rapidly growing and modernising economy, stands at a strategic inflection point- we know we cannot remain dependent on critical mineral imports and agreements forever. Recovering critical minerals from diverse sources is thus a national priority, as witnessed through the National Critical Minerals Mission and it’s provisions for recycling and the import duty waiver of imports of mineral-containing-waste.
Recycling as a strategic advantage
Recovering critical minerals from end-of-life products is now a question of strategy, of gaining a vital competitive edge. It is a direct lever for supply chain control, cost efficiency, and industrial strength. Mining faces increasing operational costs, regulatory hurdles, and global uncertainty. In contrast, recovery from waste offers shorter lead times, more stable pricing, much more scalability, and lower exposure to geopolitical disruption.
From resource control to resource recovery
Geopolitics is reshaping the mineral supply landscape. Nations with significant reserves are tightening control. The Democratic Republic of Congo, which supplies over 70 percent of the world’s cobalt, and Chile, a key lithium producer, are revisiting export regulations and ownership structures. These actions, driven by economic self-interest, are increasing volatility for manufacturers globally.
China has already invested heavily across Africa, South America, and Southeast Asia. It now dominates refining capacity for battery metals and rare earth elements. As a result, economies across Europe, North America, and Asia are accelerating efforts to localise and diversify their sourcing strategies.
In this environment, mineral recovery is a hedge against price shocks, a lever for autonomy, and a competitive alternative to unstable imports.
Global momentum is already building
Governments and businesses are moving fast:
In Europe, the Critical Raw Materials Act requires a minimum percentage of recycled inputs in battery manufacturing by 2030.
In the US, the Inflation Reduction Act is mobilising significant capital for domestic battery recycling.
In India, progress is accelerating with widespread dialogue amongst industry, government, and academia, yielding comprehensive policy support for battery recycling.
These efforts reflect new priorities across industrial policy. Recovery is being treated not as a waste-management initiative but as a source of strategic materials. Innovators worldwide are scaling up infrastructure to recover valuable metals from used batteries.
Addressing the hard questions
There are still questions that come up in industry conversations. Here are four that matter:
Is recycled material as good as mined input?
Yes. Modern mechanical and hydrometallurgical processes achieve comparable or higher purity levels than traditional mining. Many manufacturers now value recycled inputs for their higher performance, end-to-end traceability, and lower environmental footprint.
Is recovery economically viable?
Yes, and increasingly so. Various market analysts note that recycled lithium is approaching cost parity with mined lithium. As mining becomes more expensive and recovery technology matures, the economics will tilt further in favour of recycling.
Will recovery make mining obsolete?
Not immediately. Mining will remain necessary, especially in high-growth markets, but recovery can reduce pressure on virgin supply, smooth out pricing shocks, and extend the utility of existing reserves. Additionally, the same low-carbon technologies used for recycling can be used to process primary feedstock more efficiently than mining.
Why act now?
First movers in battery recycling gain access to stable, traceable critical material supplies. They also align with evolving ESG mandates and regulatory preferences in export markets like the EU and US.
India’s competitive opportunity
India does not have abundant reserves of lithium, cobalt, or nickel. However, it does have a growing supply of end-of-life electronics and batteries. This gives the country access to the same minerals, just through a different route.
Building recovery capacity will lead India to secure strategic resources, create high-value jobs, and increase resilience in its industrial transition. It is also a more capital-efficient strategy than relying solely on overseas mining.
A coordinated push—policy support, investment, and industrial commitment—is needed to fulfil India’s Viksit and Atmanirbhar Bharat aspirations. The shift from linear to circular can only happen if recycling is treated as a core industrial capability in India, on par with mining, manufacturing, and innovation.
This push entails Production-Linked Incentive (PLI) schemes to provide fiscal incentives; targeted tax benefits and logistics support to enable industrial waste collection and reverse supply chains; clear product standards to simplify recovery and repurposing; public-private partnerships to establish integrated recycling hubs; and stringent implementation of Extended Producer Responsibility policies.
Elevating recycling from an ESG and EPR compliance checkbox to a strategic priority is essential for strengthening India’s industrial ecosystem and transitioning to a more advanced, resilient, and circular economy.
A shift that redefines the industry
Mineral recovery is not a supporting act. It is becoming central to how countries and companies manage risk and build resilience at scale.
Those who act early will shape the next phase of the global supply chain. Those who delay will be left adjusting to an increasingly expensive and unpredictable system.
For India, the opportunity is immediate and practical. The demand is here, the waste streams are growing, and the technical capabilities exist. What’s needed is intent and execution. This is not just an economic measure; it is a strategic way to create long-term value in a world where control over materials increasingly defines power.
The author is Head – Corporate Development at LOHUM.
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