India's AI Lithium Recycling Advances as Global Critical Mineral Investment Declines

The International Energy Agency reported that worldwide investment in critical minerals fell 9% in 2025, ending several years of growth. Investment in battery metals dropped sharply, with lithium spending cut by about 40% and overall capital spending in the sector falling more than 20%, while copper investment grew 8%. Exploration budgets also contracted, especially for lithium and nickel, which fell around 45%, although Asia‑Pacific saw a 20% increase. Public finance commitments in advanced economies rose to roughly USD 65 billion in 2025, yet a gap remains between pledged and disbursed funds, and refining and downstream capacity continue to lag behind mining projects.

In India, researchers are tackling reliance on imported critical minerals by using artificial intelligence and synthetic biology to develop biological methods for extracting lithium from discarded lithium‑iron‑phosphate (LFP) batteries. The effort, led by Atria University in Bengaluru and MiniMines Cleantech Solutions, focuses on preserving high‑quality iron phosphate while reclaiming lithium. A new MiniMines‑AU laboratory aims to engineer microbes for metal extraction, accelerate strain optimisation with AI, and evaluate industrial‑scale deployment, aligning with India's BioE3 policy to boost domestic critical‑mineral supply and reduce environmental impacts of mining.