The Union Cabinet approved a five-year, ₹2,814 crore capital expenditure support scheme to build domestic lithium and nickel processing capacity and reduce dependence on imported refined materials.

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• The Union Cabinet on November 4 approved the Capex Support Scheme to Promote Critical Mineral Processing with a total outlay of ₹2,814 crore.
• The scheme runs for five years, from FY2026-27 to FY2030-31.
• Union Minister Ashwini Vaishnaw announced the decision at the Cabinet briefing, describing it as a step to strengthen India's critical mineral ecosystem.
• The scheme focuses on setting up domestic processing plants for critical minerals, including lithium and nickel.
• It offers a 30 per cent capital subsidy for four processing plants over the five-year period.
• The government aims to reduce India's dependence on imported refined materials and strengthen supply chains.
• Industry players welcomed the move, saying it addresses a key gap in domestic processing capacity.
• Prime Minister Narendra Modi said the scheme reflects the strategic need for domestic capability, asking why India should depend on others.
• Processed lithium and nickel feed sectors such as electric mobility and energy storage.
• The Cabinet cleared it alongside the ₹14,500 crore energy storage scheme, together making ₹17,314 crore of support for the battery supply chain.

Tags: CriticalMinerals, LithiumNickel, CapexSupportScheme