NITI Aayog's incentives for lithium-ion battery minerals processing

NITI Aayog proposed offering incentives in the form of royalty and tax benefits, in addition to a production-linked incentive scheme, for the processing, refining, and recycling of critical minerals used in lithium-ion batteries. The aim was to encourage the manufacturing of essential battery components in India and enhance domestic value addition. The Aayog emphasised that the policy should prioritise the expansion of lithium-ion battery (LIB) recycling infrastructure through production-linked incentives. This would complement the mining and extraction efforts for critical minerals, promoting environmentally sustainable waste management practices, reusing, and proper disposal. The Aayog conveyed this in its report titled 'Mine to Market: Critical Minerals Supply Chain for Domestic Value Addition in Lithium-Ion Battery Manufacturing.' Furthermore, the Aayog suggested promoting research and development for earth-abundant alternatives to the critical minerals utilized in ACC batteries. It also aimed to support the commercialization of products through the lab-to-market process, provide assistance to startup incubators and technology industrialisation centres, and facilitate demonstration projects. The Aayog believed that the thriving domestic lithium-ion battery (LIB) manufacturing industry would require robust supply chains for critical minerals and raw materials, including lithium (Li), nickel (Ni), cobalt (Co), and spherical graphite, necessary for producing key lithium-ion battery components and enhancing domestic value addition. According to the Aayog's analysis, India's advanced chemistry cell manufacturing industry would need 193 thousand tonne per annum of cathode active material to produce 100 GWh per annum of batteries by the year 2030. Also read:  Indian Mineral Production records positive growth in April 2023 India surpasses China in Coal-based Steel Capacity