The five-year scheme offers a 30 per cent capital subsidy for four domestic processing plants to cut India's dependence on imported refined critical minerals.

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• The Union Cabinet approved the Capex Support Scheme to Promote Critical Mineral Processing on November 4, 2026.
• The scheme has an outlay of Rs 2,814 crore for 2026-27 to 2030-31, fully funded through central budgetary support.
• The Ministry of Mines implements the scheme.
• It supports four plants: two lithium processing plants of at least 30 kt capacity each and two nickel processing plants of at least 50 kt each.
• Each plant receives a capital subsidy of 30 per cent of eligible investment.
• Support is capped at Rs 500 crore per lithium beneficiary and Rs 900 crore per nickel beneficiary.
• Lithium plants will convert ores and concentrates into battery-grade products, while nickel plants will produce Class-1 nickel or battery-grade nickel sulphate with cobalt recovery.
• Selection is two-stage: technical evaluation first, then financial bidding, with two beneficiaries chosen per mineral based on the lowest capex support sought.
• The scheme is expected to catalyse about Rs 10,000 crore of investment.
• Processed minerals feed electric mobility, battery storage, electronics, defence and speciality steel.
• The scheme aims to reduce import dependence and strengthen critical mineral supply-chain security.

Tags: CriticalMinerals, LithiumProcessing, CapexSupportScheme