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NEW DELHI: India’s Ministry of Mines is expected to soon introduce an incentive policy aimed at boosting domestic processing of lithium and nickel, with a proposed outlay of approximately ₹3,000 crore (US$313.48 million), according to two sources familiar with the development.

The sources requested anonymity as they were not authorized to speak publicly on the matter. The Ministry of Mines did not immediately respond to a Reuters request for comment.

Reuters had reported in January that the planned incentive scheme would focus on lithium and nickel processing. In April, the Mines Secretary stated that the government had shortlisted two critical minerals for a processing policy designed to strengthen the electric vehicle (EV) value chain, though the specific minerals were not disclosed at the time.

Lithium and nickel are key components in EV batteries and are considered vital to India’s clean mobility ambitions. The government aims to increase electric vehicle adoption to 30% of passenger car sales and 80% of two-wheeler sales by 2030, up from the current levels of 6% and 9%, respectively.

Under the proposed policy, lithium processing facilities would be required to have a minimum annual capacity of 30,000 metric tonnes, while nickel processing plants would need a minimum capacity of 50,000 metric tonnes to qualify for incentives, Reuters previously reported.