Economy
Cabinet clears ₹2,814 crore to build lithium and nickel plants in India
The scheme gives a 30% capital subsidy for four processing plants to cut dependence on imports for EV batteries.
In short
30%capital subsidy on eligible investment
- Outlay: ₹2,814 crore
- 2 lithium + 2 nickel plants
- FY27 to FY31
What happened
The Union Cabinet on Wednesday approved a ₹2,814 crore scheme, running from FY27 to FY31, to support two lithium and two nickel processing plants. Companies get a 30% capital subsidy, capped at ₹500 crore per lithium plant and ₹900 crore per nickel plant.
Each lithium plant must process at least 30,000 tonnes a year and each nickel plant 50,000 tonnes.
Why it matters
Lithium and nickel are key ingredients of EV and phone batteries, and India imports almost all of its refined supply. Processing at home makes the battery supply chain less vulnerable to shocks abroad.
