In a major boost to India’s clean energy and battery recycling sector, LICO Materials Private Limited has received an eligibility grant from the Ministry of Mines under the Incentive Scheme for Promotion of critical mineral recycling, a key initiative of the National Critical Mineral Mission (NCMM).
The grant was issued through Jawaharlal Nehru Aluminium Research Development and Design Centre (JNARDDC), the government-appointed project management agency for the scheme. LICO is among fifty-eight companies selected nationwide to support India’s domestic urban mining and critical mineral recovery capabilities.
Major Investment Planned for Battery Mineral Recovery
LICO has committed an investment of approximately ₹240 crore toward building an integrated critical mineral recovery ecosystem. Under the scheme, the company qualifies for:
*A 20% Capital Expenditure (CapEx) subsidy
*A multi-year Operational Expenditure (OpEx) subsidy linked to incremental commercial sales through FY 2030–31
The support positions LICO among the larger projects approved within the battery recycling and critical minerals segment.
Government Recognises Advanced Extraction Capabilities
The company was selected from hundreds of applicants, reflecting its strong technical expertise in battery chemistry, hydrometallurgy, and critical mineral extraction technologies. The NCMM scheme only supports companies capable of carrying out actual chemical extraction of critical minerals. Firms involved solely in collection, dismantling, or shredding operations are not eligible for incentives. LICO’s selection therefore highlights the government’s confidence in the company’s ability to contribute meaningfully to India’s strategic minerals supply chain.
Gaurav Dolwani, CEO of LICO Materials Private Limited, said, “The recognition by the ministry of mines and NCMM validates the ecosystem we are building in Karnataka. We are not just recycling batteries but producing battery-grade lithium, nickel, and cobalt in India from end-of-life batteries for India’s cell and battery manufacturers. As global mineral supply chains face geopolitical disruptions, domestic recovery of critical minerals becomes increasingly important.”
Focus on Battery-Grade Lithium, Nickel and Cobalt
LICO plans to recover critical battery materials from end-of-life lithium-ion batteries that India currently depends on imports for, particularly from China. The company will process multiple battery chemistries including LFP (Lithium Iron Phosphate), LCO (Lithium Cobalt Oxide) and NMC
(Nickel Manganese Cobalt). The approved project aims to recover lithium, nickel, and cobalt at 99% battery-grade purity, enabling these materials to be reused in India’s growing battery and electric vehicle manufacturing ecosystem.
Karnataka Expansion to Boost Domestic Recycling Capacity
The project has been classified as a brownfield expansion and will build upon LICO’s existing 25,000 tons per annum (TPA) upstream mechanical processing capacity. As part of the expansion, the company will add 10,000 TPA hydrometallurgical extraction capacity through two adjacent facilities located in Karnataka under the KIADB industrial zone.
The planned facilities will include:
A dedicated battery shredding and classification plant
A specialised hydrometallurgical extraction facility for critical mineral recovery
The expansion is expected to significantly strengthen India’s domestic capability in battery recycling and urban mining.
Reducing Dependence on Global Supply Chains
Currently, much of India’s battery critical mineral supply chain depends heavily on East Asia, particularly China, which dominates global processing of lithium, cobalt, and graphite. However, rising geopolitical tensions and supply chain disruptions have increased concerns over long-term mineral security. As a result, domestic recycling-led production is emerging as a strategic industrial priority for India. The NCMM scheme, backed by a ₹1,500 crore national outlay, aims to increase India’s battery recycling capacity from nearly 100,000 TPA to 400,000 TPA by 2030. As per the press release, LICO’s proposed 10,000 TPA hydrometallurgical expansion represents a significant contribution toward achieving this national target while supporting India’s clean energy transition and circular economy ambitions.