Cabinet approves Rs 2,814-crore scheme for domestic processing of lithium and nickel
As of the evening of 4 November: the five-year capex support scheme targets lithium and nickel ores, with cobalt as a by-product; India Today says it supports four plants.
The Union Cabinet, chaired by Prime Minister Narendra Modi, on Wednesday, 4 November, approved the "Capex Support Scheme to Promote Critical Mineral Processing" with a financial outlay of Rs 2,814 crore over five years, per Prameya News and Greater Kashmir. This piece is as of the evening of 4 November.
What the scheme does
The scheme provides targeted capital expenditure support for setting up and operating domestic processing facilities, according to Prameya News. It focuses on converting lithium and nickel ores and intermediate products into high-purity compounds, with cobalt expected to be recovered as a by-product of nickel production (India Today, Asianet Newsable). Asianet Newsable, citing ANI, says Union Minister Ashwini Vaishnaw announced it at a Cabinet briefing and that the outlay covers fiscal years 2026-27 to 2030-31. India Today describes it as offering subsidies for four lithium and nickel plants.
Why the government says it is needed
Greater Kashmir and Prameya News carry the same text, which reads like the official release, saying processing of critical minerals is geographically concentrated in a few global locations, which exposes supply chains to geopolitical disruption, price volatility and supply restrictions. It says India remains substantially dependent on imports for refined intermediates and high-purity materials because its beneficiation and processing infrastructure is at a nascent stage, and that commercial-scale projects face high capital requirements, limited access to suitable technologies and constrained access to raw materials.
India Today adds that China controls more than 90% of global processing capacity for certain critical minerals, including rare earths and battery-grade graphite.
Sectors expected to benefit
The scheme is expected to support electric mobility, battery energy storage systems, electronics, defence and speciality steel, according to India Today and Asianet Newsable.
Still open
- Which plants and companies will receive support; India Today refers to four lithium and nickel plants.
- Whether domestic processing will cut import dependence as intended; the text carried by Greater Kashmir and Prameya News says India remains substantially dependent on imports for refined intermediates and high-purity materials.
The record 4 reports
The reports this article is built from; 4 were read in full for it. Each link opens the outlet's own page.
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