# Critical Minerals Scheme India: ₹2,814 Crore Explained

- Link: https://wisdomland.in/critical-minerals-scheme-india-2814-crore/
- Published: 2026-11-06T13:58:51+05:30
- Author: Shalini

Table of Contents

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 * [Critical Minerals Scheme India: ₹2,814 Crore Explained – Impact on Lithium, Nickel and EV Batteries](https://wisdomland.in/critical-minerals-scheme-india-2814-crore/#Critical_Minerals_Scheme_India_%E2%82%B92814_Crore_Explained_%E2%80%93_Impact_on_Lithium_Nickel_and_EV_Batteries)
    - [What Is the Critical Minerals Scheme India?](https://wisdomland.in/critical-minerals-scheme-india-2814-crore/#What_Is_the_Critical_Minerals_Scheme_India)
    - [Critical Minerals Scheme India: Financial Support and Subsidy Details](https://wisdomland.in/critical-minerals-scheme-india-2814-crore/#Critical_Minerals_Scheme_India_Financial_Support_and_Subsidy_Details)
    - [Why Are Lithium and Nickel Important for India?](https://wisdomland.in/critical-minerals-scheme-india-2814-crore/#Why_Are_Lithium_and_Nickel_Important_for_India)
       * [Lithium: An Essential Material for Battery Manufacturing](https://wisdomland.in/critical-minerals-scheme-india-2814-crore/#Lithium_An_Essential_Material_for_Battery_Manufacturing)
       * [Nickel: Supporting Batteries and Industrial Manufacturing](https://wisdomland.in/critical-minerals-scheme-india-2814-crore/#Nickel_Supporting_Batteries_and_Industrial_Manufacturing)
    - [How Will Companies Be Selected for the Scheme?](https://wisdomland.in/critical-minerals-scheme-india-2814-crore/#How_Will_Companies_Be_Selected_for_the_Scheme)
    - [Will the Critical Minerals Scheme India Make Electric Vehicles Cheaper?](https://wisdomland.in/critical-minerals-scheme-india-2814-crore/#Will_the_Critical_Minerals_Scheme_India_Make_Electric_Vehicles_Cheaper)
    - [What Could the Scheme Mean for India’s Global Position?](https://wisdomland.in/critical-minerals-scheme-india-2814-crore/#What_Could_the_Scheme_Mean_for_Indias_Global_Position)
    - [Can Ordinary Citizens Apply for the Critical Minerals Scheme?](https://wisdomland.in/critical-minerals-scheme-india-2814-crore/#Can_Ordinary_Citizens_Apply_for_the_Critical_Minerals_Scheme)
    - [Frequently Asked Questions](https://wisdomland.in/critical-minerals-scheme-india-2814-crore/#Frequently_Asked_Questions)
       * [What is the total outlay of India’s Critical Minerals Scheme?](https://wisdomland.in/critical-minerals-scheme-india-2814-crore/#What_is_the_total_outlay_of_Indias_Critical_Minerals_Scheme)
       * [What is the subsidy under the lithium and nickel processing scheme?](https://wisdomland.in/critical-minerals-scheme-india-2814-crore/#What_is_the_subsidy_under_the_lithium_and_nickel_processing_scheme)
       * [How many processing plants will be established?](https://wisdomland.in/critical-minerals-scheme-india-2814-crore/#How_many_processing_plants_will_be_established)
       * [Does the scheme cover cobalt?](https://wisdomland.in/critical-minerals-scheme-india-2814-crore/#Does_the_scheme_cover_cobalt)
       * [Will consumers receive money under this scheme?](https://wisdomland.in/critical-minerals-scheme-india-2814-crore/#Will_consumers_receive_money_under_this_scheme)
       * [When was the Critical Minerals Scheme approved?](https://wisdomland.in/critical-minerals-scheme-india-2814-crore/#When_was_the_Critical_Minerals_Scheme_approved)
    - [Conclusion](https://wisdomland.in/critical-minerals-scheme-india-2814-crore/#Conclusion)
    - [Official Sources and References](https://wisdomland.in/critical-minerals-scheme-india-2814-crore/#Official_Sources_and_References)

# Critical Minerals Scheme India: ₹2,814 Crore Explained – Impact on Lithium, Nickel and EV Batteries

**Last updated: 6 November 2026**

India has approved a ₹2,814 crore scheme to strengthen domestic processing of critical
minerals, particularly lithium and nickel. The initiative aims to reduce dependence
on imported refined materials and build a stronger supply chain for electric vehicles,
battery storage, electronics, defence and other strategic industries.

The Union Cabinet approved the **Capex Support Scheme to Promote Critical Mineral
Processing** on 4 November 2026. The programme will run for five years, from FY 
2026-27 to FY 2030-31, and provide capital subsidies to eligible companies establishing
processing facilities in India.

But what exactly does the scheme offer? How much financial support can companies
receive, and could it eventually benefit India’s electric vehicle and battery industries?
Here are the important details.

## What Is the Critical Minerals Scheme India?

The Critical Minerals Scheme India is a government initiative designed to expand
domestic processing capacity for lithium and nickel. It provides capital expenditure
support to eligible companies setting up processing facilities in the country.

The focus is not limited to extracting minerals from the ground. The government 
is targeting another important stage of the supply chain: converting mineral ores
and intermediate materials into high-purity products that can be used by industries.

This is a significant gap in India’s manufacturing ecosystem. Critical mineral processing
is concentrated in a relatively small number of countries, leaving manufacturers
exposed to geopolitical disruptions, export restrictions, supply shortages and price
volatility.

By encouraging companies to establish processing facilities in India, the government
aims to retain more value within the country and strengthen the domestic supply 
chain.

## Critical Minerals Scheme India: Financial Support and Subsidy Details

The scheme has a total financial outlay of ₹2,814 crore. Eligible companies can 
receive a capital subsidy of 30% of their eligible investment, subject to the maximum
support limits prescribed for each beneficiary.

  |  Particulars |  Details |  
   |  Total scheme outlay |  ₹2,814 crore |  
 |  Scheme duration |  FY 2026-27 to FY 2030-31 |  
 |  Capital subsidy |  30% of eligible investment |  
 |  Number of lithium processing plants |  Two |  
 |  Minimum capacity per lithium plant |  30,000 tonnes |  
 |  Number of nickel processing plants |  Two |  
 |  Minimum capacity per nickel plant |  50,000 tonnes |  
 |  Maximum lithium support |  ₹500 crore per beneficiary |  
 |  Maximum nickel support |  ₹900 crore per beneficiary |

The programme targets four processing facilities: two lithium plants and two nickel
plants.

The maximum beneficiary support adds up to ₹2,800 crore: ₹1,000 crore for lithium
processing and ₹1,800 crore for nickel processing. The remaining ₹14 crore, equivalent
to 0.5% of the total outlay, is allocated for administrative expenses.

The entire scheme will be funded through budgetary support from the Government of
India.

## Why Are Lithium and Nickel Important for India?

### Lithium: An Essential Material for Battery Manufacturing

Lithium is an important raw material used in many rechargeable battery technologies.
It plays a major role in electric vehicles, consumer electronics and battery energy
storage systems.

As electric mobility and renewable energy storage expand, manufacturers need reliable
access to battery-grade lithium materials.

Under the scheme, lithium processing facilities will convert eligible ores and concentrates
into high-purity, battery-grade products. Lithium brines are excluded from the proposed
processing scope.

### Nickel: Supporting Batteries and Industrial Manufacturing

Nickel is used in several industrial applications, including stainless steel, specialised
alloys and certain lithium-ion battery chemistries.

The proposed nickel processing facilities are expected to produce high-purity products
such as Class-1 nickel or battery-grade nickel sulphate. They will also recover 
cobalt as a by-product.

These materials are important for battery manufacturing and other industries that
depend on high-quality processed minerals.

## How Will Companies Be Selected for the Scheme?

The government has proposed a competitive two-stage selection process to identify
companies eligible for financial support.

 1. **Technical qualification:** Applications will first be assessed against the prescribed
    technical requirements. Only applicants that qualify will move to the next stage.
 2. **Financial bidding:** Technically qualified applicants will participate in financial
    bidding. Selection will follow the least-cost criterion, meaning preference will
    be given to bidders seeking the lowest capital support under the scheme.

Two beneficiaries will be selected for each mineral, making four beneficiaries in
total.

Financial assistance will be released in three instalments linked to specified project
milestones. Companies must achieve the relevant milestones to receive the corresponding
payments.

## Will the Critical Minerals Scheme India Make Electric Vehicles Cheaper?

**Not immediately.**

The scheme does not provide a direct cash subsidy to people purchasing electric 
vehicles. Its purpose is to strengthen India’s domestic industrial processing capacity.

If the programme successfully creates competitive processing facilities, it could
improve supply-chain resilience, increase domestic value addition and reduce dependence
on imported processed minerals over time.

However, electric vehicle prices depend on several factors, including battery technology,
raw material prices, manufacturing costs, taxes, logistics and market competition.

Consumers should therefore not expect an immediate reduction in EV prices simply
because the scheme has been approved. Any potential price benefit will depend on
how successfully domestic processing capacity develops and whether manufacturers
can pass on the resulting cost advantages.

## What Could the Scheme Mean for India’s Global Position?

Critical minerals have become strategically important as countries compete to secure
materials needed for energy storage, electric mobility, electronics, defence and
advanced manufacturing.

India’s challenge is not limited to finding mineral resources. It also needs the
technology, investment and industrial infrastructure required to process those resources
domestically.

The new scheme attempts to address this gap by encouraging investment in lithium
and nickel processing facilities.

According to the government’s PIB backgrounder, the scheme is expected to anchor
approximately ₹10,000 crore in investment. It is also intended to support domestic
manufacturing, reduce import dependence and strengthen supply-chain resilience.

The initiative complements India’s broader efforts under the National Critical Mineral
Mission to develop a more resilient domestic critical mineral value chain.

## Can Ordinary Citizens Apply for the Critical Minerals Scheme?

No. The Critical Minerals Scheme India is an industrial capital-support programme,
not a personal financial assistance scheme.

Its intended beneficiaries are eligible companies proposing to establish the specified
lithium and nickel processing facilities.

Individuals cannot apply for the 30% capital subsidy as consumers, investors or 
electric vehicle buyers. The programme is designed to support industrial projects
rather than provide direct financial benefits to households.

## Frequently Asked Questions

### What is the total outlay of India’s Critical Minerals Scheme?

The scheme has a total financial outlay of ₹2,814 crore and will operate for five
years, from FY 2026-27 to FY 2030-31.

### What is the subsidy under the lithium and nickel processing scheme?

The government will provide a capital subsidy of 30% of eligible investment, subject
to maximum support limits of ₹500 crore per lithium beneficiary and ₹900 crore per
nickel beneficiary.

### How many processing plants will be established?

The programme targets four processing facilities: two lithium plants with a minimum
capacity of 30,000 tonnes each and two nickel plants with a minimum capacity of 
50,000 tonnes each.

### Does the scheme cover cobalt?

Cobalt is expected to be recovered as a by-product of nickel processing. Lithium
and nickel are the primary processing targets.

### Will consumers receive money under this scheme?

No. The scheme supports eligible industrial processing projects. It does not provide
direct financial assistance to consumers or electric vehicle buyers.

### When was the Critical Minerals Scheme approved?

The Union Cabinet approved the Capex Support Scheme to Promote Critical Mineral 
Processing on 4 November 2026.

## Conclusion

India’s ₹2,814 crore Critical Minerals Scheme addresses an important weakness in
the domestic manufacturing ecosystem: limited capacity to process critical minerals.

By offering a 30% capital subsidy for eligible lithium and nickel processing investments,
the government aims to encourage industrial capacity, strengthen domestic value 
addition and reduce dependence on imported refined materials.

However, the programme’s success will depend on whether selected companies can build
commercially viable facilities, secure raw material supplies, access suitable technology
and produce materials that meet industrial requirements.

For India’s electric vehicle and battery industries, this is a long-term supply-
chain development initiative rather than an immediate consumer subsidy.

## Official Sources and References

 * [Press Information Bureau: Cabinet Approves Capex Support Scheme to Promote Critical Mineral Processing – 4 November 2026](https://www.pib.gov.in/PressReleasePage.aspx?PRID=2332476&reg=48&lang=2)
 * [Press Information Bureau: CAPEX Support Scheme to Promote Critical Mineral Processing – Government Backgrounder, 5 November 2026](https://www.pib.gov.in/PressNoteDetails.aspx?ModuleId=3&NoteId=160708&lang=1&reg=48)

_Sources: Ministry of Mines and Press Information Bureau, Government of India._