Friday 05 / June / 2026
New Delhi: India’s Ministry of Mines is set to introduce a ₹3,000 crore (about $313 million) incentive scheme aimed at strengthening domestic lithium and nickel processing capacity, a key step in reducing import dependence and supporting the country’s rapidly expanding electric vehicle (EV) ecosystem.
The proposed policy, which is expected to be implemented for investments made on or after April 1, 2026, will provide financial incentives over a five-year period. The initiative is aligned with India’s target of achieving 30 percent EV penetration by 2030 and bolstering supply chain security for critical minerals.
Under the scheme, companies establishing new lithium and nickel processing facilities will be eligible for a 15 percent capital subsidy on approved investments. Incentive payouts will be linked to plant performance and released in phases upon achieving prescribed utilization benchmarks.
In the initial phase, the government plans to support two lithium processing projects and two nickel processing projects.
To ensure efficient deployment of funds, annual incentives will be capped at 40 percent of net sales turnover for lithium processing plants and 25 percent for nickel facilities.
Companies seeking support under the scheme must meet minimum production thresholds of 30,000 metric tons per year for lithium processing and 50,000 metric tons per year for nickel processing.
The programme forms part of India’s broader National Critical Mineral Mission, a long-term initiative running from 2024 to 2031 that seeks to enhance the country’s self-reliance in critical minerals essential for clean energy technologies, battery manufacturing and electric mobility.
