PM Modi Unveils 2814 Cr Plan for Domestic Mineral Refining
India is taking a definitive stride toward self-reliance in critical mineral processing following the Union Cabinet’s approval of a targeted capital assistance scheme. Prime Minister Narendra Modi stated that the program will substantially curtail the nation’s reliance on imported refined minerals.
Lithium, nickel, and cobalt are foundational to modern industry, serving as essential components in electric vehicles, energy storage systems, electronics, and national defense. Historically, India’s refineries have struggled to meet domestic demand, forcing heavy reliance on international markets. The new scheme is designed to reverse this trend.
The Prime Minister highlighted that the cabinet’s decision introduces a robust mechanism for capital investment in processing infrastructure. The initiative focuses on establishing new facilities, encouraging private and public investment, enhancing domestic value chains, and securing a resilient supply network for strategic commodities.
With a dedicated financial outlay of 2,814 crore rupees spanning five years, the scheme will provide direct capital expenditure support for setting up and launching processing plants. This targeted funding model ensures rapid deployment of technology and infrastructure required to refine raw ores into usable industrial materials.
Specifically, the program aims to process lithium and nickel ores and their intermediates into high-purity chemical forms. Cobalt will naturally be recovered as a secondary output during nickel refining. These refined materials will directly support India’s expansion in electric transportation, battery energy storage, electronics manufacturing, defense industries, and advanced metallurgy.
Prime Minister Modi underscored a forward-looking national strategy: India must cultivate the technological and manufacturing capacity required for tomorrow’s innovations. This capital assistance framework serves as a foundational pillar, ensuring that domestic critical mineral processing becomes a cornerstone of the country’s long-term industrial and security planning.