India Set to Launch ₹3,000 Crore Incentive Scheme for Lithium and Nickel Processing

India is expected to soon unveil a new incentive scheme worth around ₹3,000 crore to boost domestic processing of lithium and nickel, two critical minerals essential for electric vehicle (EV) batteries, renewable energy storage systems, and advanced manufacturing technologies.

According to sources, the proposed incentives are aimed at encouraging investments in refining and processing facilities, helping the country reduce its dependence on imported battery materials. The initiative forms part of India’s broader strategy to strengthen its critical minerals supply chain and support the rapidly growing clean energy and electric mobility sectors.

Lithium and nickel are key components in modern battery technologies, and securing a reliable supply of these materials has become a priority for governments worldwide. The planned scheme is expected to attract both domestic and international companies looking to establish processing capabilities in India.

Industry experts believe the incentives could accelerate the development of a local battery ecosystem, create employment opportunities, and enhance India’s competitiveness in the global energy transition. The move also aligns with the government’s vision of promoting advanced manufacturing and achieving greater self-reliance in strategic sectors.

As demand for electric vehicles and energy storage solutions continues to rise, the proposed policy is expected to play a significant role in building a resilient and sustainable critical minerals industry in the country.