Centre plans ₹3,000 cr incentive outlay to boost lithium, nickel processing

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.

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.

Here are some details:

In January, Reuters reported that the incentive policy would cover lithium and nickel.

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.

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 6 per cent and 9 per cent at present.

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, Reuters ‌reported earlier.