India Looks to Strengthen Its Mineral Industry

Minerals such as lithium and nickel play an important role in modern industries. They are used in electric vehicle batteries, electronics and energy storage systems. India still depends on other countries for many processed minerals.

To reduce this dependence, the Union Cabinet has approved a ₹2,814-crore scheme to support critical mineral processing.

The scheme will run for five years, from 2026–27 to 2030–31. It aims to set up four processing plants — two for lithium and two for nickel.

The government will offer a 30% subsidy on eligible investments. Each lithium plant can receive up to ₹500 crore in support, while each nickel plant can receive up to ₹900 crore.

The scheme will also support the recovery of cobalt as a by-product of nickel processing.

The government expects this plan to build more processing capacity within India and support industries such as electric vehicles, batteries and electronics.