The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved a capital expenditure (capex) support scheme to promote critical mineral processing in India, with a total financial outlay of INR 2,814 crore over five years, from FY 2026-27 to 2030-31.
The scheme targets processing of lithium and nickel ores/intermediary products into high-purity compounds. Cobalt is also expected to be recovered as a by-product of nickel production. This will support critical sectors such as electric mobility, battery energy storage system (BESS), electronics, defence, speciality steel etc.
The scheme will provide targeted capital expenditure support for establishing and operationalising domestic processing facilities.
Under the scheme, a capital subsidy of 30% of eligible investment will be provided for setting up four critical mineral processing plants, comprising two lithium processing plants, each with a minimum capacity of 30 kt, and two nickel processing plants, each with a minimum capacity of 50 kt.
The maximum capital support will be capped at INR 500 crore per lithium beneficiary and INR 900 crore per nickel beneficiary.
Beneficiaries will be selected out through a two-stage process. In the first stage, applications shall be assessed for technical qualification, and only technically qualified applicants shall be eligible to participate in the second stage of financial bidding. For each mineral, two beneficiaries shall be selected based on the least-cost criterion, i.e., the lowest CAPEX support sought by the bidders under the Scheme. The incentives will be disbursed in three tranches linked to the achievement of specified milestones.
Processing of critical minerals remains geographically concentrated in a few global locations. This exposes supply chains to geopolitical disruptions, price volatility, and potential supply restrictions, posing severe threats to supply chain resilience and economic security.
At present, India remains substantially dependent on imports for refined intermediates and high-purity materials, owing to the nascent stage of domestic beneficiation and processing infrastructure for critical minerals, including lithium, nickel, cobalt. Domestic processing capacity for critical minerals remains limited, with commercial-scale projects facing challenges relating to high capital requirements, limited availability of suitable technologies and constrained access to raw materials. Domestic processing capacity is therefore imperative for maximising value addition, achieving import substitution, and establishing resilient end-to-end value chains.
The Scheme supports the development of resilient domestic processing infrastructure, strengthening India’s capabilities across the critical mineral value chain.
Nitin Gupta, Co-founder and CEO, Attero, views the INR 2,814-crore capex support scheme as an important intervention to address one of the biggest gaps in India’s critical mineral value chain: domestic processing capacity. “While India is taking steps to secure access to critical mineral resources, building the ability to process them into high-purity materials is equally important for reducing import dependence and strengthening supply chain security. The scheme’s focus on lithium and nickel processing can encourage private investment, support technology development and create the foundation for domestic value addition,” said Nitin Gupta.
Attero has developed proprietary recycling technologies and processing capabilities, backed by more than 50 global patents, enabling it to recover over 20 critical minerals with high recovery rates and purity levels.
“Our experience demonstrates the potential of technology-led processing to strengthen domestic resource security. Through platforms like Selsmart, which makes it easy for consumers to responsibly recycle old devices, and MetalMandi, which brings transparency to scrap trading, we are channelling more e-waste and battery scrap into formal recycling, creating a steady feedstock for domestic processing. Together with the recycling incentive scheme, this initiative can help build a genuinely circular, self-reliant supply chain for India’s batteries, electric mobility, energy storage and other strategic sectors,” said Gupta.
Anurag Choudhary, CMD and CEO of Himadri Speciality Chemical Ltd said the Scheme is a landmark and transformative initiative that will accelerate India’s emergence as a global hub for advanced battery materials. Achieving true self-reliance in energy storage requires India to move beyond dependence on imported refined lithium and build indigenous capabilities across extraction, processing and refining.
“At Himadri, we firmly believe that the future of the battery materials industry will be shaped by control over the entire upstream value chain. Our vision goes beyond LFP cathode materials to building an integrated lithium ecosystem encompassing resource sourcing, hard-rock and brine-based extraction, processing and refining,” said Choudhary. “This visionary policy aligns strongly with our long-term backward integration strategy and ambition to emerge as a globally competitive, integrated battery materials player. We are confident that this initiative will catalyse investments, accelerate indigenous technology development and enable Indian companies to play a defining role in the global critical minerals and battery materials value chain.”
This content is protected by copyright and may not be reused. If you want to cooperate with us and would like to reuse some of our content, please contact: [email protected].
Comments
Please login to comment
The new issue of pv magazine Global is out now!
Available in print and digital – get your copy today!
Friday, November 13, 2026
10:00 am – 11:00 am CET, Berlin, Paris, Madrid
Monday, November 23, 2026
11:00 am – 12:00 pm CEST, Berlin, Paris, Madrid
You have no items in your basket.
