At a Union Cabinet meeting chaired by Prime Minister Narendra Modi, officials unveiled a plan to fund four new critical‑mineral processing plants, marking a major step toward domesticizing India’s lithium and nickel supply chains.
The scheme, announced on Wednesday, allocates Rs 2,814 crore (about $33.5 million) in capital subsidies over the next five years, ending in the 2030‑31 fiscal year. Under the programme, the government will cover 30% of eligible investment for two lithium and two nickel processing facilities. Each lithium beneficiary can receive up to Rs 500 crore, while each nickel beneficiary may obtain as much as Rs 900 crore.
Information and Broadcasting Minister Ashwini Vaishnaw said the initiative is part of the National Critical Mineral Mission, which aims to build processing capacity, cut import reliance and create a resilient value chain for clean‑energy technologies.
India currently depends heavily on imports for refined intermediates and high‑purity materials such as lithium, nickel and cobalt. Domestic processing infrastructure is limited, and commercial projects face high capital costs, scarce technology and constrained raw‑material access. Officials noted that global processing is concentrated in a few regions, exposing supply chains to geopolitical risk, price swings and export restrictions.
By subsidising plant construction, the government hopes to foster value addition, support the rollout of solar panels, electric vehicles and other net‑zero technologies, and strengthen economic and national security.
Industry observers expect the scheme to attract both private and public investment, though they caution that technology transfer and raw‑material availability will remain critical challenges.
Why it matters: The funding aims to reduce India’s reliance on imported critical minerals, bolster domestic manufacturing for clean‑energy products and enhance supply‑chain resilience, a priority for the country’s decarbonisation goals and economic sovereignty.