(MENAFN- KNN India) New Delhi, May 10 (KNN) India is considering offering incentives to private companies to set up lithium processing facilities within the country, according to government sources.
The move aims to develop India's nascent lithium mining industry and boost domestic supplies of the key battery metal for electric vehicles.
The incentives would be part of a new critical minerals policy being developed by the Ministry of Mines. "The policy will be comprehensive and cover all aspects from exploration to mining to value addition," a government source stated. "It will also cover incentives for beneficiation and refining within the country."
While the exact incentives are still being determined, they could include subsidies and tax benefits to encourage investment in lithium processing capabilities.
The sources indicated India may look to countries like Australia and Canada for guidance on potential incentive structures.
India discovered its first lithium reserves just last year and is working to ensure sufficient supplies of critical minerals like lithium to meet its clean technology ambitions across sectors such as electronics, telecommunications, transport and defence.
Several major companies, including Ola Electric, Vedanta and Jindal Power, have bid for licences to explore and mine lithium and other critical mineral blocks in India.
A shortlist of winners is expected by July, and those companies will also be responsible for processing the lithium into concentrates or chemicals for battery manufacturing.
The Ministry of Mines stated the government is taking various steps to ensure availability of critical minerals for downstream industries, without providing further details.
(KNN Bureau)
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