The initiative aims to boost domestic lithium and nickel processing to reduce import dependence and strengthen the manufacturing ecosystem.
The Union Cabinet on Wednesday approved a Rs 2,814 crore scheme to enhance the domestic processing of critical minerals, according to reports by The Times of India and The Indian Express. The programme focuses on establishing an ecosystem for lithium and nickel processing to support sectors such as electronics, defence, and electric mobility.
Information and Broadcasting Minister Ashwini Vaishnaw said the scheme aims to prepare raw materials, whether from mining or recycling, for manufacturing use. The initiative targets the processing of 24 defined critical minerals into feedstock for industries including semiconductors and heavy machinery.
The scheme will run from 2026-27 to 2030-31 and provides a 30 per cent capital subsidy on eligible investments for four plants. This includes two lithium plants with a minimum capacity of 30,000 tonnes each and two nickel plants with a minimum capacity of 50,000 tonnes each.
Financial support for these beneficiaries is capped at Rs 500 crore for each lithium plant and Rs 900 crore for each nickel plant. The government has identified Andhra Pradesh, Odisha, Gujarat, and Maharashtra to promote these facilities.
Prime Minister Narendra Modi stated on X that India cannot afford to rely on other nations for processing such materials. The Union Ministry of Mines noted that mineral processing is currently concentrated in a few global locations.
