India approves ₹2,814 crore subsidy for lithium and nickel processing plants
What happened
The Union Cabinet has approved a capital support scheme allocating ₹2,814 crore to incentivize domestic processing of critical minerals. The program offers a 30 per cent capital subsidy to facilitate the construction of four processing plants: two dedicated to lithium and two to nickel.
Why it matters
The subsidy aims to mitigate supply chain vulnerabilities and reduce reliance on imported battery-grade minerals. By lowering the initial capital burden for local processing, the initiative seeks to establish a more stable supply of core materials for the domestic energy sector.
Bigger picture
This policy represents a strategic pivot toward bolstering industrial resilience in the energy transition. Developing local refining capacity is intended to address structural weaknesses in the supply chain for advanced battery manufacturing.
Watch next
Monitor for the release of formal application guidelines, project selection criteria, and announcements regarding plant locations and development timelines.