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Cabinet approves ₹2,814 crore subsidy for four lithium and nickel processing plants in India
Four plants will get a 30% capital subsidy; Modi said India should not depend on other countries to refine the minerals behind EV batteries, electronics and defence.
The Union Cabinet on Wednesday approved a ₹2,814 crore scheme to set up lithium and nickel processing plants in India, Outlook India reported. The "Capex Support Scheme to Promote Critical Mineral Processing" runs for five years, from 2026-27 to 2030-31.
What the scheme offers
- A capital subsidy of 30% of eligible investment.
- A cap of ₹500 crore per beneficiary for lithium plants and ₹900 crore per beneficiary for nickel plants.
- Four plants in all: two lithium plants of at least 30 kilotonnes each and two nickel plants of at least 50 kilotonnes each.
- Cobalt is expected to be recovered as a by-product of nickel production.
Two beneficiaries will be picked for each mineral in two stages: a technical check, then financial bidding, with the lowest capital support sought winning. Money will be paid in three tranches linked to milestones, Outlook India said.
Why the government wants it
India depends heavily on imports for refined critical minerals, and processing is concentrated in a few places in the world, which exposes supply chains to disruption, price swings and possible export restrictions, the report said. The government links this to national security, economic security and its decarbonisation goals. The minerals are used in electric vehicles, battery storage, electronics, defence and specialty steel.
Prime Minister Narendra Modi said in a post on X that India should not depend on other countries to process these minerals, and that lithium, nickel and cobalt are essential for EVs, batteries, electronics and defence. "India must have capabilities to build technologies of the future," he wrote, Outlook India reported.
The hurdles the report lists
Large projects of this kind need heavy capital and suitable technology, and raw material supply is limited, Outlook India said.
What is not yet known
The reports do not say when bids will open, where the plants could be located or where the ore will come from. BDT will update this story when the official notification is published.
How we verified this
VerifiedBDT read Outlook India in full. YourStory’s page could not be opened (access blocked) and is cited from its headline and search summary, which match Outlook on the outlay, the 30% subsidy, the ₹500 crore and ₹900 crore caps, the four plants and the five-year period. Other outlets in search results (Devdiscourse, DD India, UNI India, Swarajya) report the same figures. The Modi quote is as reported by Outlook India from his post on X; BDT could not open the PIB release.
