India’s cabinet on Wednesday approved a Rs 2,814 crore (about $297 million) scheme to subsidise four lithium and nickel processing plants, its first direct support for refining freshly mined ore as it tries to reduce reliance on Chinese supply.
MoneyTurkey Commodities Desk | 4 November 2026
Key points
- The scheme pays a 30% capital subsidy for two lithium and two nickel plants over five years, FY27 to FY31, according to Moneycontrol.
- Support is capped at Rs 500 crore (about $53 million) per lithium plant and Rs 900 crore (about $95 million) per nickel plant; cobalt is expected as a by-product of nickel processing.
- Bidders are picked on the lowest subsidy requested, and payments come in three tranches tied to project milestones.
What happened
The Union Cabinet approved the capital-expenditure support scheme on Nov. 4, according to an official statement reported by Moneycontrol, Reuters and Mining.com. The plants will turn lithium and nickel ores and intermediate products into high-purity compounds for electric vehicles, battery storage, electronics, defence and speciality steel.
Selection runs in two stages, technical qualification and then financial bidding. For each metal, the two companies asking for the least government support win. Moneycontrol first reported in September that the scheme was being prepared; Mines Secretary Keshav Chandra said then that it would fill a gap, since India already funds critical-mineral recycling through a Rs 1,500 crore (about $158 million) scheme but had no support for processing newly mined ore.
Why India is doing this
The government said India depends heavily on imports of refined lithium, nickel and cobalt, and that processing is concentrated in a few countries, leaving supply chains exposed to export restrictions and price swings. Officials cited tighter conditions after China’s export controls. The government has also named Gujarat, Maharashtra, Odisha and Andhra Pradesh as sites for critical-mineral processing parks.
Why it matters
The sums are small next to global battery-metals spending, but the scheme marks India moving from mining and recycling into refining, the step China dominates. If the four plants get built, they would add non-Chinese supply of battery-grade lithium and nickel chemicals for India’s EV and storage makers, and give miners a new buyer to sell ore to.
What to watch
- Which companies bid, and how much subsidy they ask for
- Capacity and start dates for the four plants
- Offtake deals with Indian battery and EV makers
Related on MoneyTurkey
- US Crude Output Hits Record 14 Million Barrels a Day
- Standard Lithium Eyes 2027 Start on $1.45 Billion SWA Project
For information only. Not investment advice.
Sources
- Moneycontrol (Nov. 4, 2026): moneycontrol.com
- Reuters (Nov. 4, 2026): reuters.com
- Mining.com (Nov. 4, 2026): mining.com
