India working on a policy for processing of critical minerals important for the value chain of electric vehicles and batteries. The move aims at reducing import dependence and building domestic refining capacities to strengthen supply chains.Mines Secretary Piyush Goyal said that the proposed policy is at an advanced stage, and will begin with focus on Nickel and Lithium, with both minerals being used within EVs and Nickel being particularly used in high-end EVs.
Stating that the focus on sourcing of Lithium is being exemplified in exploration efforts within India as well as through possible MoUs with foreign countries, he said that the unavailability of the processing value chain in India will impact growth in related industries.
Noting the lengthy “auction to production” pathway for Lithium, he said that establishing a processing value chain will require capital intensive efforts on the part of PSUs as well as private companies.Also Read: India in talks with World Bank, ADB to offset geopolitical risk for private cos acquiring mines abroadHighlighting policy changes to boost private exploration for surface minerals, he said the move will allow government agencies and PSUs to focus on strategic minerals which have lacked private investment till now.While many geographies like China and the European Union had earlier banned export of used products to focus on recycling of critical minerals, sources had told CNBC-TV18 in November 2025 that extraction of critical minerals from black mass lacks infrastructure while the high-level metal technology, and the complex R3 and R4 recycling technologies are available only with a few companies.This lack of availability had prompted plans to recycle Lithium waste from Lithium-Ion batteries. The residual black mass from Li-Ion batteries, obtained during recycling, can be used to derive Lithium, Manganese, Cobalt, Nickel, and Graphite after processing.Also Read: Income Tax Act 2025 cuts complexity by 40%, but transition may confuse taxpayers: KPMG’s Sunil Badala
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