India Plans New Scheme to Boost Domestic Critical Mineral Processing, Says Mines Secretary
The Government of India is working on a new policy framework to support the development of domestic critical mineral processing plants, aiming to strengthen the country’s position in global supply chains and reduce dependence on imports, according to the Mines Secretary.
The proposed scheme is expected to focus on incentivizing private sector participation in processing key minerals such as lithium, cobalt, nickel, and rare earth elements. These minerals are essential for emerging technologies including electric vehicles, renewable energy systems, and advanced electronics.
Officials indicated that while India has made progress in securing access to critical mineral resources globally, the lack of domestic processing capacity remains a major bottleneck. The new initiative seeks to bridge this gap by promoting investment in refining and value-added manufacturing within the country.
The scheme is likely to include financial incentives, infrastructure support, and faster regulatory clearances to attract both domestic and international players. It may also align with broader initiatives such as “Make in India” and the Production-Linked Incentive (PLI) schemes to build a robust industrial ecosystem.
India currently imports a significant portion of processed critical minerals, particularly from countries like China, which dominates global refining capacity. By developing local processing capabilities, the government aims to enhance supply chain resilience and support its clean energy transition goals.
Industry stakeholders have welcomed the move, noting that establishing processing facilities will not only reduce import dependency but also create jobs and boost technological capabilities. However, experts emphasize the need for clear policy guidelines, environmental safeguards, and long-term investment support to ensure success.
The Mines Ministry is expected to finalize the contours of the scheme in the coming months, with consultations underway involving industry players, state governments, and technical experts.
As global competition intensifies for critical minerals, India’s push to develop domestic processing infrastructure is seen as a strategic step toward securing its economic and energy future.