India has incentives for lithium, nickel processing

Delhi: The Mines Ministry plans to launch an incentive scheme soon to encourage domestic processing of lithium and nickel, Mines Secretary Keshav Chandra announced on Tuesday. The objective is to bolster an integrated critical mineral value chain in India and reduce reliance on imported processed materials.

Chandra revealed this at the 60th Annual General Meeting of the Federation of Indian Mineral Industries (FIMI). Also, the government has approved plans for establishing critical mineral processing parks in Gujarat, Maharashtra, Odisha and Andhra Pradesh.

The secretary expressed satisfaction with the progress made by these four states. They have successfully identified mineral sources, determined processing methods, and identified downstream industries that could benefit from the proposed parks.

Concerning mining blocks that have not commenced operations despite auctions, clearances, and lease signings, Chandra criticized the practice as "squatting." The government is not pleased with companies holding onto mining blocks without starting operations, even after obtaining all necessary clearances.

He appealed to FIMI members to address this issue seriously, as the government is worried about such instances. Lithium, vital for lithium-ion batteries in electric vehicles, consumer electronics, and battery energy-storage systems, has a lightweight and high electrochemical potential, enabling batteries to store more energy. Nickel, extensively used in stainless steel manufacturing, is crucial for high-energy-density lithium-ion batteries.

Nickel-rich cathode chemistries can boost battery energy density and lessen the need for cobalt, supporting electric vehicles and stationary energy-storage systems.