Commodity News | India Plans Four Critical Mineral Processing Parks

Advisory Bazaar Info Services

The Indian government is planning to establish four dedicated critical mineral processing parks in Gujarat, Maharashtra, Andhra Pradesh and Odisha to accelerate domestic value addition in battery materials.

The initial focus will be on lithium and nickel, which are considered key minerals for the battery and electric vehicle sectors.

According to Mines Secretary Keshav Chandra, each park will be developed as an element-specific ecosystem, integrating the complete value chain—from mineral processing to downstream industries. Processing facilities for other critical minerals are expected to be developed at a later stage.

The government is reportedly fast-tracking the development of lithium- and nickel-focused parks as part of its broader strategy to strengthen India’s domestic critical mineral supply chain.

The initiative comes under the National Critical Mineral Mission (NCMM), approved by the Union Cabinet in January 2025. The mission has a total outlay of ₹34,300 crore over seven years, aimed at reducing import dependence, achieving greater self-reliance in critical minerals and supporting India’s green energy transition.

Under the NCMM, the government has allocated ₹16,300 crore, while public sector enterprises are expected to contribute the remaining funds for critical mineral exploration in India and overseas.

Additionally, ₹500 crore has been allocated to encourage the establishment of mineral processing parks using existing infrastructure. Recycling is also expected to play a key role in these facilities.

Market Outlook

The development of dedicated lithium and nickel processing parks could strengthen India’s battery, EV and clean-energy supply chains over the long term. Increased domestic processing and recycling capacity may also help reduce India’s dependence on imported critical minerals and improve supply-chain security.