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Are you a foreign investor, NRI, or individual looking to set up a manufacturing unit in India, especially in one of India’s booming sectors?
According to the recent article, India is preparing for its next big manufacturing opportunity — lithium and nickel processing.
The government is planning to offer incentives for companies that set up processing units for critical minerals like lithium and nickel in India. These minerals are very important for making EV batteries, energy storage systems, electronics, and clean energy products.
In simple words, India does not want to only import battery materials from other countries. It wants to build the full supply chain inside the country — from mineral processing to battery manufacturing and electric vehicles.
What is the main news about PLI incentives?
The government is planning to give PLI incentives and import duty benefits to companies that set up lithium and nickel processing units in India. These minerals are very important for making EV batteries, energy storage systems, and clean energy products. The proposed scheme may include around ₹2,000 crore in production-linked incentives, along with duty waivers on capital goods used for setting up these plants.
What does “processing” mean here?
India may buy or mine raw lithium/nickel, but raw minerals cannot directly go into batteries. They first need to be refined, purified, and converted into usable battery-grade material.
So, the government is saying:
Instead of only importing ready processed material, let us build factories in India that can process these minerals here.
Why is this important for India?
Right now, the global battery supply chain is heavily dependent on a few countries, especially China. If India wants to grow its EV industry, battery manufacturing, renewable energy storage, and electronics manufacturing, it needs secure access to lithium and nickel.
This policy can help India:
- Reduce import dependence
India will not have to rely completely on foreign countries for processed lithium and nickel. - Support EV manufacturing
EV batteries need these minerals. If processing happens in India, battery makers can get raw material more easily. - Attract investment
Companies may invest in mineral processing plants because the government will support them through incentives. - Create jobs and new industries
Processing units will need engineers, technicians, logistics, compliance, and manufacturing support. - Strengthen Make in India
This fits into India’s larger plan of becoming a manufacturing hub for EVs, batteries, and clean energy products.
What is PLI in simple words?
PLI means Production Linked Incentive.
In simple terms, the government tells companies:
“If you manufacture or process more in India, we will give you financial support based on your production.”
So companies are encouraged to set up factories and increase production inside India.
Why lithium and nickel only?
Because both are critical for batteries.
Lithium is used in lithium-ion batteries, which power EVs, phones, laptops, and energy storage systems.
Nickel is used in many advanced EV batteries because it helps improve battery performance and range.
That is why both minerals are considered strategic for India’s clean energy future.
What is the bigger picture?
India already has a PLI scheme for advanced chemistry cell battery manufacturing, but domestic battery manufacturing has been slow, and one big challenge is the availability of processed critical minerals. Official data shared in February 2026 showed that only 1 GWh capacity had been installed against 40 GWh awarded under the ACC PLI scheme.
So this new incentive plan is like filling a missing gap. India does not just want to assemble batteries. It wants to build the full ecosystem: minerals → processing → battery cells → EVs → energy storage.
In simple conclusion
This is a very strategic move. India is trying to make sure that its future EV and battery industry does not get stuck because of imported raw materials. By giving incentives for lithium and nickel processing, the government wants to bring more investment, reduce foreign dependency, and make India a serious player in the global battery supply chain.
Why Should Foreign Investors Look at India?
For global companies, this is a strong signal.
India is not just a large consumer market anymore. It is also becoming a serious manufacturing and processing destination.
Foreign companies can benefit from:
- Growing EV and battery demand in India
- Government support for clean energy manufacturing
- Lower operating and manpower costs compared to many developed countries
- Large availability of skilled technical talent
- Strong domestic market and export potential
- Opportunity to enter early in a fast-growing sector
Bigger Opportunity for Global Businesses
This move is not only about lithium and nickel. It shows India’s larger plan to reduce import dependence and build advanced industries at home.
For foreign investors, battery materials, EV supply chain, clean energy, electronics, and manufacturing are becoming attractive areas in India.
Companies that enter early may get the advantage of government incentives, market access, and long-term growth.
How Mercurius Can Help
At Mercurius, we help foreign companies set up and expand their business in India with complete support — from company registration and tax advisory to compliance, accounting, payroll, and business setup services.
If you are planning to invest in India’s EV, battery, clean energy, or manufacturing sector, this may be the right time to explore the opportunity.
India is preparing for the future of clean energy — and global businesses can be a part of this growth story.
For more details or more information, you can contact us; we would be happy to help!
Connect with us+91 966 777 9615
