India to Build Four Lithium, Nickel Processing Plants
Plan to support four lithium and nickel processing plants over five years, boost domestic production and reduce import dependence
- Cabinet approves Rs 2,814 crore for critical mineral processing.
- Scheme targets two lithium and two nickel plants.
- Capital subsidy will cover 30% of eligible investment.
- Cobalt recovery and domestic value addition also targeted.
GG News Bureau
New Delhi, 4th Nov: The Union Cabinet has approved the Critical Mineral Processing Scheme, with a financial outlay of Rs 2,814 crore over five years, to strengthen India’s domestic capacity to process lithium and nickel and reduce dependence on imported refined materials.
The scheme, approved under the chairmanship of Prime Minister Narendra Modi, will run from FY 2026–27 to 2030–31. It aims to establish four processing plants, comprising two lithium facilities and two nickel facilities.
Under the scheme, the government will provide capital subsidies covering 30% of eligible investments. Each lithium processing plant must have a minimum capacity of 30 kilotonnes (kt), while each nickel plant must have a minimum capacity of 50 kt.
The maximum capital support will be capped at Rs 500 crore per lithium beneficiary and Rs 900 crore per nickel beneficiary.
The initiative also envisages recovering cobalt as a by-product of nickel processing. The targeted minerals and materials are important for sectors such as electric mobility, battery energy storage systems, electronics, defence and speciality steel.
The government said global processing of critical minerals remains concentrated in a limited number of locations, exposing supply chains to geopolitical disruptions, price fluctuations and potential restrictions. India’s domestic processing infrastructure is still at an early stage, with high investment requirements, technology constraints and limited access to raw materials posing challenges.
Beneficiaries will be selected through a two-stage process. Applicants will first undergo technical assessment, after which qualified bidders will participate in financial bidding. Two beneficiaries will be selected for each mineral based on the lowest capital support sought.
The financial incentives will be released in three instalments linked to the achievement of specified milestones.
The scheme is intended to promote domestic value addition, strengthen supply-chain resilience and develop an integrated critical mineral processing ecosystem under the broader objective of Atmanirbhar Bharat.
