Feasibility Study for Establishing Critical Minerals and Recycling Facility

Critical Minerals and Recycling Opportunity Landscape

Minerals

Market Overview and Growth Potential

The demand for critical minerals and recycling is growing in India due to increasing industrialization, EV adoption, and government-backed sustainability initiatives. The Union Budget 2025-26 emphasizes:

  • Domestic sourcing and processing of critical minerals
  • Expansion of lithium-ion battery recycling
  • Reduction of import dependence for rare earth elements
Key Market Indicators:
  • India’s critical minerals market projected to reach $10 billion by 2030
  • Lithium-ion battery recycling industry expected to grow at 40% CAGR
  • Government target of 50% recycled content in EV batteries by 2035
  • PLI incentives to promote domestic mineral refining and processing

Government Policies and Budgetary Support

Budget 2025-26 Incentives:
  • ₹5,000 crore allocation for mineral exploration and processing
  • PLI scheme for lithium refining and rare earth extraction
  • Subsidies for setting up battery recycling plants
  • Tax exemptions for recycling and mineral recovery initiatives

Key Challenges and Risks

  • High CAPEX for setting up refining and recycling plants
  • Dependence on technology imports for advanced processing
  • Regulatory hurdles and environmental compliance requirements
  • Global price fluctuations of critical minerals

Implementation Roadmap

Short-Term (0-2 Years)
  • Identify suitable locations and secure mining and recycling licenses
  • Set up pilot recycling and refining units with government subsidies
  • Develop partnerships with EV manufacturers and industrial users
Medium-Term (2-5 Years)
  • Expand full-scale mineral refining and recycling operations
  • Scale domestic supply chains to reduce import dependency
  • Invest in advanced recovery technologies for higher efficiency
Long-Term (5+ Years)
  • Establish India as a global hub for mineral processing and exports
  • Integrate circular economy models for sustainable mineral use
  • Strengthen R&D in alternative battery materials and metal recovery

Conclusion

India’s critical minerals and recycling sector presents high-value, strategic investment opportunities. With strong policy support, increasing market demand, and evolving technology solutions, businesses can build scalable, sustainable enterprises in mineral processing and recycling.

Reach out to us by filling the form to get a project report / feasibility study done to start a business in this sector.

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Project Report

Typical Content Sheet
1Executive Summary
2Introduction
2.1Background
2.2Project Idea & Value Proposition
2.3Promoters’ Background
3Regulatory Framework
3.1Licenses and Approvals
3.2Regulatory Support & Restrictions
3.3Government Incentives and subsidies if applicable
4Market Assessment
4.1Industry Analysis & Overview of the Market
4.2Market Segmentation
4.3Demand Assessment
4.4Demand Drivers
4.5Supply Assessment
4.6Competition Analysis
4.7Demand Supply Gap and Market Forecast
5The Business and Operating Model
5.1Proposed Products
5.2Alternative Technologies
5.3Manufacturing Process
5.4Plant & Machinery and Plant Layout
5.5Installed Capacity and Utilization
5.6Infrastructure, Land, Location
5.7Raw Materials, Consumables, Utilities
5.8Inbound, In-plant and Outbound Logistics
5.9Manpower Plan and Organization Structure
6Financial Feasibility
6.1Key Project Assumptions
6.2Cost of the Project
6.3Means of Finance
6.4Revenue Estimates
6.5OPEX Estimates
6.6Loan Repayment Schedule
6.7Taxation and MAT Calculations
6.8Depreciation Schedule
6.9Proforma P&L Account (Forecast)
6.10Proforma Balance Sheet (Forecast)
6.11Cash Flow Statements
6.12Key Project Metrics (IRR, DSCR)
7Risk Assessment & Mitigation
8Caveats
 Appendices