India Bets Big on Lithium & Nickel Processing

The Indian Union Cabinet has sanctioned a Rs 2,814 crore scheme to develop domestic processing capabilities for lithium and nickel. This five-year Capex Support Scheme, operational from FY27 to FY31, will facilitate the establishment of two lithium processing plants, each with a minimum capacity of 30,000 tonnes, and two nickel processing facilities, with capacities of at least 50,000 tonnes each.

The initiative addresses India's significant dependence on imported refined intermediates and high-purity materials. By offering capital subsidies, the government aims to overcome the high investment barriers, limited technology access, and raw material challenges that have constrained domestic processing. Cobalt is also expected to be recovered as a by-product of nickel processing.

Beneficiaries will be selected through a rigorous two-stage process, including technical qualification and competitive financial bidding. The program is designed to bolster supply chains for critical sectors such as electric mobility, battery energy storage systems, electronics, speciality steel, and defence. This strategic investment is anticipated to encourage private investment and technological advancement in the critical mineral value chain.