The Government of India and the European Union have launched a joint funding initiative worth €15.2 million (₹1.69 billion) to support research and innovation in electric vehicle (EV) battery recycling under the India-EU Trade and Technology Council’s Working Group 2 on Green and Clean Energy Technologies.

Proposals must be submitted by September 15, 2026.

The initiative aims to secure critical raw materials, accelerate the transition to a circular economy, and strengthen bilateral relations between India and the European Union.

The funding will be provided through the European Union’s Horizon Europe program and India’s Ministry of Heavy Industries. The program will focus on developing advanced recycling technologies, including high-efficiency material recovery, safe, digitized collection systems, and pilot-scale demonstrations of innovative processes.

The identified focus areas include high recovery rates, handling of mixed chemistries, logistics and inclusion, and safety and second-life applications for critical minerals such as lithium, graphite, and cobalt.

The initiative also includes plans to establish a joint India-EU pilot line in India to support real-world validation and industrial deployment of recycling technologies. The program will bring together researchers, industries, and startups from both regions.

The India-EU Trade and Technology Council’s Working Group 2 focuses on green and clean energy technologies.

The Union Budget 2026–27 placed clean energy and manufacturing at the center of India’s growth strategy, unveiling targeted outlays, customs duty rationalization, and policy reforms to accelerate the growth of critical minerals, renewables, and electric vehicles.

Budget 2026 takes a strategic view of raw material security by fully exempting customs duties on cobalt powder, lithium-ion battery scrap, and waste and scrap of lead and zinc, among other critical minerals.

In September 2025, the Union Cabinet approved a ₹15 billion (~$170.19 million) incentive program to develop India’s recycling capacity to separate and produce critical minerals from secondary sources, such as e-waste and lithium-ion battery scrap.