Critical minerals such as lithium and nickel play an important role in modern industries. They are used in electric vehicle batteries, electronics and energy storage systems. India is now looking to increase its ability to process these minerals within the country.
The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved a new scheme worth ₹2,814 crore to support domestic critical mineral processing.
The scheme will run for five years, from 2026-27 to 2030-31. It aims to set up four processing plants, including two for lithium and two for nickel.
Under the plan, the government will provide a 30% subsidy on eligible investments. Each lithium project can receive up to ₹500 crore, while each nickel project can receive up to ₹900 crore.
The scheme will also support the recovery of cobalt during nickel processing. The government aims to reduce import dependence, strengthen local supply chains and support industries such as electric vehicles, defence and electronics.
This move is part of India’s efforts to build stronger domestic manufacturing capabilities under the Atmanirbhar Bharat vision.
