The Union Cabinet has approved a ₹2,814-crore scheme to build lithium and nickel processing plants in India, aiming to cut dependence on imports of refined critical minerals.
The "Capex Support Scheme to Promote Critical Mineral Processing" runs for five years, from FY 2026-27 to 2030-31. It will give a capital subsidy of 30% of eligible investment for four plants: two lithium plants of at least 30 kt capacity each and two nickel plants of at least 50 kt each.
The limits on support
Capital support is capped at ₹500 crore per lithium beneficiary and ₹900 crore per nickel beneficiary. Cobalt is expected to be recovered as a by-product of nickel production.
How beneficiaries will be chosen
Selection has two stages. Applicants are first assessed for technical qualification, and only those who qualify move to financial bidding. For each mineral, two beneficiaries will be chosen on the least-cost criterion, meaning the lowest capital support sought. The subsidy will be paid in three tranches linked to milestones.
The problem it addresses
The government says processing of critical minerals is concentrated in a few places worldwide, which exposes supply chains to geopolitical disruption, price swings and possible restrictions. India, it says, depends substantially on imports for refined intermediates and high-purity materials because its domestic processing is at a nascent stage. Commercial-scale projects face high capital needs, limited technology and constrained access to raw materials.
The release says the scheme will support electric mobility, battery energy storage, electronics, defence and speciality steel. It does not name the companies or locations likely to take part.
Source: official release by the Cabinet, issued through the Press Information Bureau, Government of India (04 NOV 2026 3:29PM by PIB Delhi). Read the full official text: Cabinet Approves Capex Support Scheme to Promote Critical Mineral Processing with an Outlay of Rs.2,814 Crore for Lithium and Nickel processing.
How we verified this
VerifiedEvery fact, figure and quotation is taken from the official PIB release (Release ID 2332476) issued by the Cabinet on 04 NOV 2026 3:29PM by PIB Delhi; checked against the source on publication. Story written by BDT from that release; no outside facts added.
Sources
- 1.Cabinet Approves Capex Support Scheme to Promote Critical Mineral Processing with an Outlay of Rs.2,814 Crore for Lithium and Nickel processing — Press Information Bureau, Government of India
