Upcoming Scheme Targets Value Addition
The Indian government is set to introduce a "very substantial" scheme to promote the domestic processing of lithium and nickel, according to Keshav Chandra, Secretary of the Ministry of Mines. Speaking at the annual general meeting of the Federation of Indian Mineral Industries (FIMI) on Tuesday, Chandra highlighted the need to strengthen the downstream segment of the critical mineral value chain.
While the ministry already operates a Rs 1,500-crore incentive scheme focused on critical mineral recycling, Chandra noted that there is currently no similar financial support for processing freshly mined ore into value-added, battery-grade materials. The proposed scheme is designed to fill this specific gap, aiming to boost domestic capabilities as demand from electric vehicles, batteries, and energy storage systems continues to rise.
Four Critical Mineral Parks Operationalising
The announcement comes as the government moves to operationalise four critical mineral parks declared in Gujarat, Maharashtra, Odisha, and Andhra Pradesh. Chandra stated that the ministry has recently reviewed the progress of these parks, noting that authorities have identified specific sources, processing methods, and downstream industries for each location.
According to earlier reports by Moneycontrol, the parks have distinct specialisations: Gujarat is focused on rare-earth permanent magnets, Maharashtra on lithium, Odisha on nickel, and Andhra Pradesh on rare earth elements, titanium, and zirconium.
Challenges in Technology and Operations
Chandra addressed several structural challenges facing the sector. He noted that countries with which India has signed Memorandums of Understanding (MoUs) are often reluctant to share advanced technology, or the technology offered is at an inferior stage of development. While some technology can be purchased from the market, Chandra described the costs as very high. In response, the ministry is focusing on developing technologies indigenously through centres of excellence and strengthening academia-industry partnerships.
The Secretary also raised concerns about the operational status of auctioned mining blocks. He referred to the practice of holding leases without commencing operations as "squatting," stating that the government is reviewing progress monthly to ensure that mining reforms lead to increased production rather than speculation.
Export of Unprocessed Minerals
A significant portion of the discussion centred on the export of raw minerals. Chandra pointed out that India continues to export minerals without beneficiation, a practice prohibited in several African countries. He highlighted a paradox where India exports raw minerals and subsequently imports them in processed form. Additionally, he flagged the export of "black mass" from recycling, noting that while Japan, China, and the US have banned such exports, India continues to allow them despite having sufficient domestic feedstock and listed recycling facilities.