TL;DR
India is set to offer capital subsidies for establishing lithium and nickel processing plants to boost domestic mineral output for EV batteries and reduce import dependence.
India plans to unveil new incentives aimed at encouraging companies to establish lithium and nickel processing plants within the country. This strategic move is intended to enhance domestic output and cater to the escalating demand for these crucial minerals, particularly essential for the electric vehicle (EV) battery supply chain. India is targeting a 30% electric car penetration and 80% for two-wheelers by 2030, a significant jump from current figures of 4% and 6% respectively.
The proposed incentive scheme includes a 15% capital subsidy for eligible investments in lithium and nickel processing projects commencing on or after April 1, 2026, with the subsidy subject to a cap. This initiative is vital for India to accelerate its energy transition and mitigate emissions through clean energy adoption, especially as the nation currently lacks the advanced technology to process these critical minerals, a capability largely dominated by China.
