Cabinet approves Rs 2,814 crore scheme for lithium and nickel processing: Union Minister Kishan Reddy

New Delhi: The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved a Rs 2,814 crore capital expenditure incentive scheme for lithium and nickel processing, Union Coal and Mines Minister G Kishan Reddy said.

The scheme aims to build domestic refining capacity for minerals used in electric vehicles, battery storage, renewable energy and modern manufacturing. Reddy said stronger capabilities in these sectors would support India’s development goals.

Commercial refining capacity planned

Reddy said the initiative would support the establishment of large commercial-scale lithium and nickel refining plants in India.

The government expects investment of about Rs 9,560 crore under the scheme. It aims to develop annual refining capacity of 60,000 tonnes of lithium and one lakh tonnes of nickel.

According to the minister, this capacity would be close to India’s estimated requirement for these minerals by 2030. He also projected production worth Rs 25,000 crore.

Domestic processing would help reduce reliance on imports and limit exposure to supply disruptions caused by international political developments, he said.

Exploration and recycling push

Reddy said the government had undertaken 901 mineral exploration projects and auctioned 56 critical mineral blocks.

A separate Rs 1,500 crore incentive scheme supports critical mineral recycling. The government has approved 58 companies under that initiative, with a proposed combined processing capacity of 8.5 lakh tonnes annually.

He said efforts also cover the recovery of valuable minerals from mine waste and tailings. Nine centres of excellence are being established to strengthen research.

These measures form part of the wider effort under the National Critical Minerals Mission to develop a domestic value-added supply chain.

Four processing parks planned

The government plans four dedicated critical mineral processing parks in Maharashtra, Andhra Pradesh, Gujarat and Odisha, with investment of Rs 500 crore, Reddy said. The parks would provide infrastructure for processing facilities and related industries. Together with the incentive scheme, they aim to attract technology, investment and skilled employment.

Reddy said the initiative would support incentives for advanced chemistry cell batteries and cathode active materials. It would also assist the India Semiconductor Mission and the Rare Earth Permanent Magnet Scheme. He said expanding mineral processing would strengthen domestic manufacturing and help meet India’s clean energy and battery storage goals.