MeitY Urges Inclusion of Rare-Earth Magnet Recycling in PLI Scheme

 The Ministry of Electronics and Information Technology (MeitY) has asked the Ministry of Heavy Industries (MHI) to include the recycling of used rare-earth permanent magnets (REPMs) in the proposed Production-Linked Incentive (PLI) scheme. The recommendation comes as India is among the top three producers of electronic waste globally, according to the news reports.

India’s E-Waste Output

India generated about 4.17 million tonnes of e-waste in 2022, data from the Global E-waste Monitor 2022 by the International Telecommunication Union (ITU) showed. This makes India the third-largest generator of e-waste after China and the US. 

With the government’s push for electric mobility and the target of carbon neutrality by 2070, the volume of e-waste, including used magnets, is expected to rise further in the coming years.

MeitY’s Proposal

MeitY has suggested that the upcoming PLI scheme for REPMs should not only support domestic manufacturing but also promote the recycling of spent magnets. Officials said this would help build a structured system for reusing valuable materials already present in electronic waste.

MHI’s Position

The Ministry of Heavy Industries, which is preparing the REPM PLI scheme, has said its focus will remain limited to manufacturing. It has told MeitY that recycling and recovery of critical minerals are handled by the Ministry of Mines. Inter-ministerial discussions are currently underway, and both MeitY and MHI have not issued any official statement on the matter.

The proposed PLI scheme aims to set up 5 REPM plants with a combined capacity of 6,000 tonnes per year. The scheme includes financial support such as capital subsidies and sales-based incentives for private companies.

Supply and Industry Impact

China, which accounts for around 90% of global REPM production, restricted exports to India in April 2025. This affected Indian automobile and electric vehicle (EV) manufacturers. While most mobile companies use recycled magnets, smaller disruptions were seen in hearable and wearable production.

Read More: China September Rare Earth Magnet Exports Drop 6.1%!

Conclusion

The proposal to include recycling highlights India’s growing e-waste challenge and the need for a long-term approach to secure raw materials for domestic industries.

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