Cabinet approves ₹2,814 crore scheme to boost lithium and nickel processing in India
A 30% capital subsidy will back four processing plants as the government tries to cut its dependence on imported refined minerals.
- Outlay: ₹2,814 crore to 2030-31
- Subsidy: 30% for 4 plants
- Caps: ₹500 cr (lithium), ₹900 cr (nickel)
What was approved
The Union Cabinet cleared a ₹2,814 crore capex support scheme on 4 November to promote domestic processing of lithium and nickel, running through 2030-31. It gives a 30% capital subsidy for four plants, with support capped at ₹500 crore per lithium project and ₹900 crore per nickel project.
The conditions
Each plant needs a minimum capacity of 50,000 tonnes, and cobalt is expected to be recovered as a by-product of nickel processing. Beneficiaries will be picked through a two-stage process of technical qualification and then financial bidding.
Why it matters
Lithium and nickel go into EV and grid batteries. India imports most of its refined material, so the scheme aims to build processing capacity at home and make supply chains less exposed to other countries.
