The Union Cabinet approved a Rs. 28.14 bn capital expenditure support scheme on November 4, 2026, to promote domestic processing of critical minerals, according to the release. The programme will operate for five years, covering FY26-27 to FY30-31, and is intended to establish processing facilities for lithium and nickel in India. The scheme provides a capital subsidy equal to 30 per cent of eligible investment for four plants, comprising two lithium facilities and two nickel facilities. Each lithium plant must have a minimum annual capacity of 30,000 t, while each nickel plant must be capable of processing at least 50,000 t. Financial support is capped at Rs. 5 bn per beneficiary for lithium projects and Rs. 9 bn for nickel facilities. Beneficiaries will be chosen through a two-stage process involving technical qualification followed by financial bidding on a least-cost basis. The approved support will be released in three tranches linked to the achievement of specified milestones. This structure is intended to connect public funding with the establishment and operation of eligible processing capacity. The government aims to reduce India’s reliance on imported refined intermediates and high-purity critical minerals. The scheme is also intended to strengthen supplies for electronics, semiconductors, batteries and defence manufacturing. Coal and Mines Minister G Kishan Reddy said the programme would build domestic capabilities across these sectors. Cobalt is expected to be recovered as a by-product of nickel processing, potentially improving the resource efficiency of the planned facilities. Nickel ores are broadly classified as oxide or sulfide ores, with laterites falling in the oxide category. Sulfide deposits are commonly concentrated through froth flotation before further extraction and refining. Lithium carbonate is the principal product of lithium-ore beneficiation and acts as a precursor to other lithium salts used in ceramics and battery materials. The planned facilities are therefore intended to support both mineral processing and downstream industrial applications.