India Backs Four Plants to Process Lithium and Nickel

Four plants are at the heart of the Union Cabinet’s new ₹2,814-crore plan: two to process lithium and two to process nickel. Approved Wednesday, the five-year scheme aims to help India turn these minerals into high-purity materials for batteries, electric vehicles and other industries. It also reflects a strategic concern: India relies heavily on imports for refined minerals. ^6,10

Each of the four plants will receive support through a 30 per cent subsidy on eligible investment. Each lithium facility must process at least 30,000 tonnes, while each nickel plant must process at least 50,000 tonnes. The government will cap support at ₹500 crore for each lithium beneficiary and ₹900 crore for each nickel beneficiary. Companies must first pass a technical review. Then, for each mineral, two will be chosen through bidding that favours those seeking the least public support. Payments will come in three stages, tied to project milestones. ^6,10

That imported supply matters because minerals such as lithium, nickel and cobalt go into products India wants to make at home. These include electric vehicles, battery storage systems, electronics, defence equipment and speciality steel. Processing capacity is limited, and the Cabinet says high costs, a lack of suitable technology and uncertain access to raw materials have held back large projects. When processing is concentrated abroad, supply chains are also exposed to political shocks, price swings and possible restrictions. The scheme can bring more processing work into India, but it does not by itself ensure steady supplies of the minerals plants need. ^6,8

Steady supplies will therefore matter as companies move from approval to building facilities. The scheme runs from fiscal year 2026-27 through 2030-31. The next step is to assess applicants’ technical plans before financial bidding. The government expects domestic processing to add value in India and strengthen supply chains, while cobalt recovery is planned as a by-product of nickel processing. ^6,10