The Daily PulseBusiness
Cabinet set to approve Rs 2,800‑crore plan for lithium and nickel processing
Reported by Siddharth Deshmukh (Staff Writer) · Indian Express - Business ·
Photo: Wikimedia CommonsWhat Happened
The Union Cabinet is expected to approve a Rs 2,800 crore capital‑expenditure scheme on Wednesday to boost domestic processing of critical minerals such as lithium and nickel. The scheme will offer a 30 % capital subsidy for up to four new processing plants – two for lithium with at least 30 kt capacity each and two for nickel with at least 50 kt capacity each. The subsidy ceiling is Rs 500 crore per lithium project and Rs 900 crore per nickel project.
Reaction
Sources said the plan targets sectors including electric‑mobility, battery storage, electronics, defence and speciality steel. The government has earmarked four states – Andhra Pradesh, Odisha, Gujarat and Maharashtra – to host dedicated mineral‑processing parks. Gujarat and Andhra Pradesh will focus on rare‑earths, while Odisha will handle nickel and Maharashtra will handle lithium. Keshav Chandra, Secretary of the Ministry of Mines, had earlier hinted at the scheme but gave no details.
What's Next
India currently imports most of its lithium, nickel, cobalt and rare‑earths and relies on China for about 90 % of global processing capacity. The new scheme, together with a Rs 500 crore stockpile programme announced by the National Critical Minerals Mission, aims to cut this vulnerability. Queries to the Ministry of Mines have so far gone unanswered.
Context
Building a domestic processing base reduces reliance on foreign supply chains that can be disrupted during trade tensions.
ExplainerWhy this matters
What Happened
The government announced a Rs 2,800 crore scheme that will subsidise 30 % of the investment needed to set up four high‑purity lithium and nickel processing plants.
Why It Matters
Lithium, nickel and cobalt are key for Li‑ion batteries used in phones and electric cars, and India currently imports almost all of them. By creating a local processing base the country hopes to lower its reliance on China, which controls about 90 % of global critical‑mineral processing and can influence supply during trade disputes.
What Happens Next
The approved scheme will channel funds to the four selected states, with the Ministry of Mines overseeing plant approvals. Parallel work on a national stockpile, funded with Rs 500 crore, will run alongside, while the government monitors progress and may expand support if the initial plants prove successful.
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