Mines Ministry to launch incentive scheme for domestic lithium, nickel processing

New Delhi: The Mines Ministry will soon introduce an incentive scheme to promote the domestic processing of lithium and nickel, Mines Secretary Keshav Chandra said on Tuesday.

The initiative is intended to support the creation of an integrated critical mineral value chain in the country and lower India's dependence on imported processed materials.

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"Very soon, we will be launching our scheme for lithium and nickel," Chandra said 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.

Chandra said he had recently assessed the progress made by the four states and expressed satisfaction with their preparations.

"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 said.

He said the states had identified mineral sources, processing methods and the downstream industries that could be developed around the proposed parks.

The secretary also flagged concerns over mining blocks that have not begun operations even after the completion of auctions, receipt of statutory clearances and execution of mining leases.

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Referring to the practice as "squatting", Chandra said the government was not comfortable with companies holding on to mining blocks without commencing operations.

"Somebody has secured a mining block, all clearances have been obtained, and the lease has been signed, but operationalisation has still not commenced," he said.

Chandra urged FIMI members to address the issue seriously, saying the government was concerned about such instances.

Lithium is an important input for lithium-ion batteries used in electric vehicles, consumer electronics and battery energy-storage systems. Its light weight and high electrochemical potential help batteries store greater amounts of energy.

Nickel, widely used in stainless steel manufacturing, is also important for high-energy-density lithium-ion batteries. Nickel-rich cathode chemistries can increase battery energy density and reduce reliance on cobalt, supporting their use in electric vehicles and stationary energy-storage systems.