The Mines Ministry is set to introduce an incentive scheme to promote domestic processing of lithium and nickel as India seeks to develop an integrated critical mineral value chain and reduce its dependence on imports.
Mines Secretary Keshav Chandra announced the upcoming scheme at the 60th Annual General Meeting of the Federation of Indian Mineral Industries (FIMI).
The government has also cleared proposals for setting up critical mineral processing parks in Gujarat, Maharashtra, Odisha and Andhra Pradesh. Preparations in the four states have progressed, with mineral sources, processing methods and potential downstream industries being identified.
Critical Mineral Processing Push
The proposed processing parks are expected to bring mineral processing and downstream industries closer together, strengthening domestic supply chains for clean energy, advanced manufacturing and other strategic sectors.
Lithium is a key input for lithium-ion batteries used in electric vehicles, consumer electronics and battery energy storage systems. Nickel is widely used in stainless steel and is also an important input for high-energy-density battery chemistries.
The processing incentive scheme and mineral parks form part of India's broader effort to build domestic capabilities beyond mineral extraction and develop processing and manufacturing capacity within the country.
Govt Flags Delays In Operationalising Mining Blocks
The government has also raised concerns over delays in bringing auctioned mining blocks into production despite companies having secured statutory clearances and executed mining leases.
The Mines Ministry has flagged instances where companies have obtained mining blocks and completed the necessary approvals but have yet to operationalise them.
The government wants auctioned and cleared mineral blocks to move into production rather than remain idle, as it seeks to improve domestic mineral availability.
The push to accelerate mine operationalisation, alongside incentives for lithium and nickel processing and the development of critical mineral processing parks, comes as India seeks to secure raw materials required for electric mobility, renewable energy, battery storage and advanced manufacturing.