India's Mines Ministry likely to unveil $317 million incentive package to boost nickel and lithium processing capacity

India's Ministry of Mines is expected to roll out an incentive package worth an estimated $317 million aimed at developing domestic processing capabilities for nickel and lithium, according to government sources speaking on Monday, June 22.

Under the proposed scheme, investors would need to meet minimum capacity thresholds to qualify for fiscal support: lithium processing plants must have an annual capacity of at least 30,000 metric tons, while nickel processing facilities would be required to achieve a minimum capacity of 50,000 metric tons per year.

Nickel plays a critical role in stainless steel production and is also added in smaller quantities to heavy-duty structural carbon steel as an alloying element. Lithium, widely known for its use in electric vehicle (EV) manufacturing, also finds application in the steel sector---particularly in the form of lithium carbonate, which is added to mold fluxes to lower slag melting points and is used in certain specialized iron-based alloys.