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India approves $297 million incentive policy for lithium, nickel processing

By Reuters News

NEW DELHI, Nov 4 (Reuters) - India's cabinet approved on Wednesday an incentive policy worth 28.14 billion rupees ($297 million) to boost domestic processing of lithium and nickel, the government said in a statement, in a move aimed at reducing the country's reliance on supply chains dominated by China.

  • India has a high import dependence on critical minerals such as lithium, and tighter conditions following export controls by China create potential supply-chain vulnerability, the government had said in March

  • On Wednesday, it unveiled a programme seeking to bolster processing of lithium and nickel ores and intermediary products into high purity compounds

  • It listed electric mobility, battery energy storage systems, electronics, defence and speciality steel as beneficiaries of the programme

  • "Processing of critical minerals remains geographically concentrated in a few global locations. This exposes supply chains to geopolitical disruptions, price volatility, and potential supply restrictions," the statement said

  • This has implications for national security and economic sovereignty, it said

  • The programme would push India towards self-reliance and support the development of domestic processing infrastructure, it added

($1 = 94.7100 Indian rupees)

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