Cabinet approves capital support for four lithium and nickel processing plants

4 November 2026

The Union Cabinet has approved the Capital Expenditure Assistance Scheme for Promotion of Critical Mineral Processing, with an outlay of Rs 2,814 crore. It will support four plants: two for lithium, each of at least 30,000 metric tonnes capacity, and two for nickel, each of at least 50,000 metric tonnes. Cobalt is expected to come out as a by-product of nickel processing. Each selected firm gets a capital subsidy of 30 per cent of eligible investment, capped at Rs 500 crore for a lithium plant and Rs 900 crore for a nickel plant. Beneficiaries will be picked in two stages, a technical eligibility screen followed by financial bidding, with two winners for each mineral chosen on the lowest subsidy sought. Payments come in three tranches tied to targets. The scheme runs for five years, from FY 2026-27 to FY 2030-31, and is meant to cut India's dependence on imported battery-grade material.