Prime Minister of India Narendra Modi on Wednesday said that India must develop its own capacity to process critical minerals instead of relying on other countries, as the Union Cabinet approved a INR 2,814 crore scheme to establish domestic lithium and nickel processing plants.
“Do you feel India should depend on other countries for processing the critical minerals that power our future? I certainly don’t,” Modi said in a post on X, highlighting the need to strengthen domestic capabilities in materials used in emerging technologies.
He said that lithium, nickel and cobalt play a key role in electric vehicles, batteries, electronics and defence, while India remains heavily dependent on imports of refined materials.
“The principle is clear…India must have capabilities to build technologies of the future!” Modi said, outlining the Indian government’s focus on establishing processing plants, offering capital subsidies, increasing domestic value addition and strengthening supply chains.
The Cabinet, chaired by Modi, approved the five-year scheme to support the establishment of four critical mineral processing plants between the financial years 2026-27 and 2030-31.
Under the initiative, the Indian government will provide a capital subsidy covering 30 percent of eligible investments for two lithium processing plants and two nickel processing facilities.
Each proposed lithium plant must have a minimum processing capacity of 30,000 tonnes, while each nickel processing plant must have a minimum capacity of 50,000 tonnes.
The Indian government has set a maximum capital subsidy of Rs500 crore for each lithium processing beneficiary and Rs900 crore for each nickel processing beneficiary.
Indian Authorities will select two beneficiaries for each mineral based on the least-cost criterion, giving preference to applicants seeking the lowest capital expenditure support from the government.
The scheme will release incentives in three instalments, with each payment linked to the achievement of specified milestones.
India currently depends substantially on imports of refined critical mineral intermediates and high-purity materials, including lithium, nickel and cobalt, as its domestic processing infrastructure remains at an early stage.
