According to the report, India planned to encourage the domestic enterprises to invest in building lithium and nickel processing plants to increase the production of critical minerals and meet rapidly growing domestic demand.

This incentive program is proposed to start after April 1, 2026. Eligible lithium and nickel processing projects can receive a 15% capital subsidy, with the policy valid for five years. To qualify for the subsidy, lithium and nickel processing plants must have a minimum capacity of 30,000 tons and 50,000 tons per year, respectively.

Additionally, the subsidy cap for lithium plants is 40% of annual net sales, while for nickel plants it is 25%. The Indian government expects to initially subsidize two lithium processing projects and two nickel processing projects to secure domestic demand through 2030.