India to roll out incentive scheme for lithium and nickel processing

New Delhi – The Union government said it will introduce an incentive scheme to encourage the setting up of lithium and nickel processing facilities across the country. The move is part of a broader strategy to reduce reliance on imports of critical minerals and to develop a domestic supply chain for emerging technologies such as electric‑vehicle batteries. The scheme, to be unveiled by the Ministry of Mines, will offer financial subsidies, tax relief and preferential access to land for eligible projects.

Under the proposed framework, companies that invest in processing plants will receive capital subsidies covering a percentage of the project cost, along with reduced customs duties on imported raw material inputs. The government also plans to streamline clearances and provide a single‑window mechanism to accelerate approvals. The incentives are targeted at both large integrated firms and smaller players to foster a diversified industry base.

Officials expect the scheme to attract significant private investment and generate employment in mineral‑rich states. By creating a robust processing ecosystem, the policy aims to position India as a regional hub for lithium and nickel value‑addition, supporting the nation’s clean‑energy and electric‑mobility goals. The detailed guidelines are slated for release in the coming weeks.