PM Modi announces Rs 2,814 crore critical minerals scheme: What it means for India
The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved a ₹2,814 crore scheme to set up critical mineral processing plants in India. Announced on November 4, 2026, the five-year programme aims to reduce India’s dependence on imported lithium and nickel materials used in electric vehicles, batteries, smartphones and defence equipment. Four processing plants are planned under the scheme.
India currently imports much of the refined material required by these industries, even when raw minerals can be sourced separately. The government wants more of that processing to happen within the country. Under the new scheme, companies setting up eligible facilities can receive financial assistance covering 30 per cent of their investment.
Do you feel India should depend on other countries for processing the critical minerals that power our future?
I certainly don’t!
Lithium, nickel, cobalt…these are essential for EVs, batteries, electronics and defence. Yet, we remain heavily dependent on imports of refined materials.
To address this, the Cabinet has approved a scheme to change this.
Key highlights:
New critical mineral processing plants.
Capital subsidy to boost investment.
Greater domestic value addition.
Stronger supply chains.
The principle is clear…India must have capabilities to build technologies of the future!
https://t.co/deencvjivt
— Narendra Modi (@narendramodi) November 4, 2026
What did PM Modi say about the ₹2,814 crore scheme?
In a post on X, PM Modi questioned India’s dependence on other countries for processing critical minerals.
“Do you feel India should depend on other countries for processing the critical minerals that power our future?” he asked, before adding, “I certainly don’t!”
Modi said the scheme would support new processing plants, encourage investment and strengthen domestic supply chains.
How will the lithium and nickel scheme work?
The government will support four facilities between FY 2026-27 and FY 2030-31.
Two lithium processing plants must each have a minimum capacity of 30,000 tonnes, and two nickel plants must each handle at least 50,000 tonnes.
Financial assistance will be capped at ₹500 crore per lithium project and ₹900 crore per nickel project, subject to the scheme’s conditions.
Companies will undergo technical evaluation followed by competitive bidding. Subsidies will be released in three stages linked to project progress.
How will India benefit from the scheme?
Lithium and nickel are important materials for rechargeable batteries. Cobalt, another important battery material, could be recovered during nickel processing.
Domestic processing could help Indian battery manufacturers, electric vehicle companies and electronics producers source more refined materials locally.
It could also reduce exposure to international supply disruptions and sudden price changes.
Will the scheme create jobs?
Building and operating four processing plants could create opportunities for engineers, technicians, construction workers, equipment suppliers and logistics companies.
Related businesses, including battery manufacturing and recycling, could benefit from the proposed investment.
The scheme comes as India seeks to build a larger domestic battery supply chain and reduce its reliance on overseas mineral processors.