India's federal Ministry of Mines is expected to shortly unveil a policy with incentives to process lithium and nickel with an outlay of around ₹3,000 crore ($313.48 million), according to two sources familiar with the matter. As reported by Reuters, the sources did not want to be identified publicly because they were not authorised to speak to the media. The mines ministry did not immediately respond to a Reuters email seeking comment.
Nickel and lithium are critical to India's EV supply chain, especially when it comes to batteries, as New Delhi targets 30 per cent electric car penetration and 80 per cent for two-wheelers by 2030 from the current 6 per cent and 9 per cent respectively. According to Reuters reports, these critical minerals are essential for securing an electric vehicle value system. In April, the mines secretary said that the government had shortlisted two critical minerals linked to securing an electric vehicle value system for processing policy, without elaborating further.
To qualify for the incentives, lithium processing plants must have a minimum capacity of 30,000 metric tons, while nickel plants must have at least 50,000 tons, as reported by Reuters. The incentive policy was first reported by Reuters in January, covering both lithium and nickel processing. The policy represents a significant step toward India's goal of establishing domestic capabilities in critical EV supply chain materials.
