India's critical mineral push is advancing, with the government planning four dedicated critical mineral processing parks in Gujarat, Maharashtra, Andhra Pradesh and Odisha, according to Business-Today. The initial focus will be on building domestic processing capacity for lithium and nickel, mines secretary Keshav Chandra said on Thursday.
Lithium and nickel prioritised for battery sector
Chandra said lithium and nickel have been prioritised because of their importance to the battery sector, while processing for other critical minerals will be taken up subsequently.
"We are fast-tracking lithium and nickel because these are crucial elements for the battery sector. Batteries are currently the most important component globally for future growth; so, we will fast-track both of these." — Mines Secretary Keshav Chandra
The government will soon introduce measures for the two minerals and is in the process of identifying designated parks, Chandra added.
Value-chain parks with state-led implementation
Each park will be designed to house the complete value chain for a designated element, from processing to downstream industries. This will allow value addition across different stages to be carried out within a single location, the official said. State governments will take the lead in planning and implementing the parks, while the Centre will provide technical support. Coal and Mines Minister G Kishan Reddy said the Centre had already written to all state governments and chief ministers seeking their cooperation. "The planning itself will be by the state government. We will extend full technical support," he said.
The proposed parks will be developed around specific minerals, creating dedicated ecosystems that bring processing and downstream industries together. The four states identified are:
- Gujarat
- Maharashtra
- Andhra Pradesh
- Odisha
National Critical Mineral Mission funding
The proposed parks form part of the National Critical Mineral Mission (NCMM), which the government had earlier approved with a total outlay of Rs 34,300 crore over seven years. The mission aims to achieve self-reliance in critical minerals and accelerate India's journey towards green energy transition. The funding breakdown is as follows:
| Funding source | Amount (Rs crore) |
|---|---|
| Government earmarked | 16,300 |
| Public sector enterprises contribution | 18,000 |
| Total outlay | 34,300 |
According to Business-Today, the NCMM also seeks to promote exploration of critical minerals within the country and offshore locations.
Critical minerals for clean energy
Critical minerals such as copper, lithium, nickel, cobalt and rare earths are essential raw materials for clean energy technologies, according to the report. Their applications span wind turbines, electricity networks, electric vehicles and battery manufacturing.
With the processing parks slated to be developed around these minerals, India is positioning to build domestic capacity for the battery supply chain. The fast-tracking of lithium and nickel processing, alongside the broader NCMM outlay, signals a coordinated push that commodity traders and procurement teams will be tracking as the government identifies designated parks and introduces supporting measures.
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