The Centre is set to roll out a dedicated incentive scheme for the domestic processing of lithium and nickel — two critical minerals at the heart of India's battery manufacturing ambitions — Mines Secretary Keshav Chandra announced on Tuesday, 22 September. The disclosure came at the 60th Annual General Meeting of the Federation of Indian Mineral Industries (FIMI) in New Delhi, signalling that the government is moving past the policy-drafting stage into active implementation.

What the Scheme Covers

"Very soon, we will be launching our scheme for lithium and nickel," Keshav Chandra said at the FIMI event. Further details, he added, will be made public only after the required regulatory approvals are in place. The scheme is designed to stimulate domestic processing capacity for both minerals, reducing India's dependence on imports across the battery supply chain.

Lithium is a core input for lithium-ion batteries powering electric vehicles (EVs), consumer electronics, and battery energy storage systems (BESS). Nickel, meanwhile, is widely used in stainless steel manufacturing and in high-energy-density lithium-ion battery chemistries — making both minerals strategically indispensable as India accelerates its EV transition.

Four States, Four Mineral Ecosystems

The government has already designated Andhra Pradesh, Odisha, Gujarat, and Maharashtra as the four states where critical mineral processing parks will be established. Each park is being conceived as a self-contained ecosystem tailored to a specific mineral rather than a generic industrial zone.

According to Keshav Chandra, Gujarat and Andhra Pradesh are focused on rare earth processing, while Odisha and Maharashtra are earmarked for nickel and lithium processing, respectively. "All of them are doing a fantastic job. Within a short period, they have identified the sources of minerals, the manner in which they will be processed and the downstream industries that can be developed," he remarked.

State-Level Strengths and Strategic Logic

Gujarat already has access to heavy rare earth elements and has developed beneficiation and processing technology in-house, making it a natural hub for rare earth refining. Andhra Pradesh is being positioned to host a dedicated rare earth corridor. Odisha, which holds its own nickel reserves, is also geographically well-placed to process imported nickel from Indonesia and other mineral-rich nations, given its location in eastern India and proximity to major port infrastructure.

This comes amid a broader global race to secure critical mineral supply chains, with countries from the United States to the European Union rolling out billion-dollar incentive frameworks of their own. India's move mirrors that global momentum while attempting to leverage domestic reserves and strategic geography.

What Comes Next

Exact timelines for the scheme's launch remain contingent on regulatory approvals, with the Mines Secretary declining to specify a formal date. Industry observers note that the speed of inter-ministerial clearances — involving the Ministries of Mines, Heavy Industries, and New and Renewable Energy — will be the key variable. Once launched, the scheme is expected to attract both domestic and foreign investment into India's nascent critical mineral processing sector.