Canada and India are tantalizingly close to a 10-year multibillion dollar uranium supply deal that will likely be signed at a heads of state meeting in March, according to sources from both sides at the recently concluded India Energy Week, held in Goa, India, last week.
Canada is the world’s second-largest producer of uranium, accounting for 13% to 15% of global output, according to the International Energy Agency, while India is the world’s third-largest consumer of energy.
Given its burgeoning economy, India is on a quest for secure uranium supplies as it expands its nuclear power footprint tenfold to 100 gigawatts by 2047, and both sides are looking to partner on that front.
NEW DELHI, Jan 29 (Reuters) – India plans to soon offer incentives for companies to set up lithium and nickel processing plants to help boost output and meet rising demand for critical minerals, according to two sources and a government presentation reviewed by Reuters.
India is seeking to accelerate its energy transition and cut emissions by promoting clean energy initiatives like electric vehicles, though it lacks the technology to process critical minerals, a capacity that is largely dominated by China.
Nickel and lithium are critical to India’s EV supply chain, especially when it comes to batteries, as New Delhi targets 30% electric car penetration and 80% for two-wheelers by 2030 from 4% and 6% at present.
The incentive plan proposes a 15% capital subsidy for eligible investments in lithium and nickel-processing projects starting on or after April 1, 2026, which would be subject to a cap, according to the presentation.
A 15% capital subsidy appears to be “realistic,” one of the sources said.
India’s Ministry of Mines, which is responsible for the proposal, did not respond to a Reuters email seeking comments.
Under the programme, incentives would be available for five years and capped at 40% of annual net sales turnover for lithium processing plants and 25% for nickel plants, the presentation showed.
To qualify for the incentives, lithium processing plants must have a minimum capacity of 30,000 metric tons, while nickel plants must have at least 50,000 tons, it showed.
The subsidy would be disbursed in stages, subject to minimum plant utilisation targets set by the government, the presentation showed.
The government initially plans to roll out the incentives for two lithium and two nickel projects to meet the country’s demand by 2030, one of the sources and the presentation said.
In 2023, India identified more than 20 minerals – including lithium – as “critical” for its energy transition efforts and to meet rising demand from businesses.
NEW DELHI: India has reached out to key critical mineral producers to bring in processing technology into the country, officials said. The move comes close on the back of the government rolling out auctions of critical mineral mines.
“Talks are on with the United States (US), Australia, and United Kingdom (UK), South Korea, and Japan for processing technology. Brazil and Argentina are also positive about collaborating with India,” a senior mines ministry official told ET. According to another official aware of the plan, agreements with countries are being lined up and will soon be signed.
While India is going ahead with auction of mines holding critical minerals, there are no facilities for their beneficiation.
“We want to target India’s first critical mineral beneficiation and processing plant in the next 3-5 years,” the official quoted above said. “We want to ensure that development of critical mineral processing and extraction happen in parallel.”
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