The government is considering offering incentives to encourage private companies to establish lithium processing plants, with the aim of boosting its lithium mining sector and strengthening the supply of battery metals for electric vehicles (EVs).
As part of an upcoming critical minerals policy, the government plans to incentivize companies to set up processing facilities that cover beneficiation and refining stages. Although the specific nature of the incentives has not been disclosed, the government is drawing inspiration from countries such as Australia and Canada.
The ministry of mines has affirmed its dedication to securing critical mineral supply chains for downstream industries. India, which ranks third in global carbon emissions, has identified thirty minerals, including lithium, as ‘critical’ for advancing cleaner technologies in sectors like electronics and transportation.
As reported by ManufacturingToday, given the recent discovery of lithium reserves, the establishment of local processing facilities is crucial. Leading contenders for critical mineral blocks include Ola Electric and Vedanta Ltd, positioning India for self-reliance in lithium production.
