Strategic Duty Waiver Catalyzes Lithium-Ion Battery Recycling Investment, Bolstering Domestic Supply Chain Resilience

The Materials Recycling Association of India (MRAI) has announced a pivotal policy shift: the duty-free import of lithium-ion battery scrap. This strategic measure is designed to incentivize the use of imported scrap as primary feedstock for domestic recycling operations, thereby reducing reliance on the export of these valuable secondary resources and diminishing dependence on freshly mined critical minerals. Analysis indicates this regulatory adjustment will significantly lower input costs for domestic recyclers, making large-scale investment in advanced recycling infrastructure more financially viable. The move is expected to attract substantial capital into the sector, fostering technological innovation and creating a robust, circular supply chain for battery materials within the national economy. By internalizing the recycling value chain, the policy aims to enhance resource security, mitigate supply risks associated with geopolitical volatility in mineral sourcing, and position the domestic industry as a competitive player in the global battery ecosystem. This calculated intervention represents a critical step toward building a self-sufficient and sustainable battery manufacturing and recycling framework, aligning with broader strategic energy transition goals.