[SMM Market Flash] India Approves Capex Support for Lithium and Nickel Processing Plants

Published: Nov 06, 2026 09:17 (GMT+8)

Save

India’s Union Cabinet on November 4 approved a "Capex Support Scheme to Promote Critical Mineral Processing" worth INR 28.14 billion (about US$297 million), running from FY2026-27 to FY2030-31. The scheme will back two lithium plants with at least 30,000 tonnes of capacity each and two nickel plants with at least 50,000 tonnes each, all turning ores and intermediates into high-purity compounds. Cobalt will be recovered as a by-product of nickel processing. The subsidy covers 30% of eligible investment, capped at INR 5 billion per lithium project and INR 9 billion per nickel project. Beneficiaries will be chosen through technical evaluation followed by competitive bidding. The government said the plants will serve e-mobility, battery storage, electronics, defence and specialty steel, as concentrated critical mineral mining leaves supply chains exposed.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or for more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

1 hour ago

30,000 mt/year! New update on a high-compaction density LFP project in Yibin, Sichuan

Recently, the Yibin Municipal Ecology and Environment Bureau of Sichuan Province issued a public notice on the approval decisions for environmental impact assessment documents of construction projects, granting approval for the Environmental Impact Report of the 30,000 mt/year High-Compaction Density LFP Project by Yibin Tianyuan Lithium Battery New Materials Co., Ltd. The notice period runs from November 2 to November 11, 2026. The approval states that after fully implementing the environmental protection measures proposed in the EIA documents, the adverse environmental impacts of the project can be mitigated, and approval is granted in principle for Yibin Tianyuan Lithium Battery New Materials Co., Ltd. to proceed with construction in accordance with the nature, scale, location, processes, and environmental protection measures specified in the report.

1 hour ago

15 hours ago

[SMM Analysis] Market Sentiment Marginally Recovers, Lithium Carbonate Destocking Accelerates

15 hours ago

16 hours ago

[SMM Analysis] Cobalt Salts Halt Slide on Metal Rally, but Two-Plus Months of Inventory Looms: Can Sentiment Hold?

A cobalt metal futures rally lifted cobalt salt sentiment this week, with cobalt chloride and cobalt tetroxide prices stabilizing. Cathode producers showed more interest in locking in cobalt tetroxide orders, mostly as bottom-fishing, with limited pass-through to cobalt chloride. As of October, cobalt tetroxide inventory still covers over two months of demand. SMM sees only short-term support from sentiment amid persistent oversupply, and expects narrow consolidation.

16 hours ago