In an effort to increase domestic refining capacity and lessen reliance on foreign processors, India plans to approve incentives for the establishment of lithium and nickel processing facilities.
A senior government official told ET that the planned initiative, which is nearing approval, will provide production-linked incentives and reduce import levies on capital goods required to create processing facilities.The official stated that the incentive program for lithium and nickel processing units is almost complete and that it is in line with larger initiatives to develop India's vital minerals ecosystem.

In addition to duty waivers on capital items, the initiative may offer production-linked incentives of approximately ₹2,000 crore.The official stated that a waiver of import duties on capital goods will enable the establishment of processing facilities funded by the program more quickly.The action expands upon the National Critical Minerals Mission (NCMM) of Rs 16,300 crore, which aims to secure supply and fortify the entire value chain, from mining and exploration to beneficiation, processing, and recovery from end-of-life products.
The Institute for Energy Economics and Financial Analysis claims that India is still totally dependent on imports for nickel, cobalt, and lithium because these minerals are not produced domestically.With more than half of the world's lithium processing capacity, China controls the global lithium supply chain. Additionally, it processes almost one-third of the nickel supply worldwide.
When domestic mines start producing, the government wants to have refining capability in place.
In July 2024, the Mines Ministry held an auction of two blocks in Bihar and Karnataka that contained nickel, platinum, and chromium. A month prior, the Katghora block of rare earth elements and lithium in Chhattisgarh was put up for auction. These minerals are essential for space, defense, and electric car uses.By 2030, it is anticipated that India's yearly demand for lithium-ion batteries will have increased fivefold to over 210 GWh. 50 GWh of indigenous manufacturing capacity is the goal of the National Programme on Advanced Chemistry Cell Battery Storage.
According to an official release, at least ten manufacturers have also indicated plans to install a total of 178 GWh of capacity in the nation over the course of the next five years.