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India to Set Up Critical Mineral Processing Parks in Four States with Initial Focus on Lithium and Nickel

The Government of India is advancing its critical mineral roadmap by planning to set up four dedicated processing parks in Gujarat, Maharashtra, Andhra Pradesh, and Odisha. The initial focus of these facilities will be on building domestic processing capacity for lithium and nickel to support the battery and clean energy sectors.

What Happened

According to Mines Secretary Keshav Chandra, the proposed industrial parks will be developed around specific minerals to build integrated ecosystems connecting processing units directly with downstream industries. State governments will take the lead in planning and executing the parks, while the central government will supply technical assistance. Coal and Mines Minister G Kishan Reddy stated that the Centre has formally written to state governments and chief ministers to seek their cooperation for the initiative.

Key Highlights

  • Four Target States: Dedicated critical mineral processing parks are planned for Gujarat, Maharashtra, Andhra Pradesh, and Odisha.
  • Prioritised Minerals: Domestic processing for lithium and nickel is being fast-tracked due to their vital role in battery production, with other critical minerals to follow later.
  • Integrated Ecosystems: Each park is designed to house the entire value chain for a specific element, enabling processing and downstream manufacturing in a single location.
  • National Critical Mineral Mission (NCMM): The initiative operates under the NCMM, which has an approved total budget of Rs 34,300 crore over seven years.
  • Funding Breakdown: The government has allocated Rs 16,300 crore for the mission, while public sector enterprises are expected to contribute Rs 18,000 crore.
  • Exploration Mandate: The mission also seeks to foster critical mineral exploration both within India and at offshore locations.

Why This Matters

Critical minerals such as lithium, nickel, copper, cobalt, and rare earths serve as essential raw materials for clean energy technologies, including electric vehicles, battery manufacturing, wind turbines, and electricity networks. Fast-tracking domestic processing infrastructure aims to advance India’s self-reliance in critical minerals and accelerate its broader transition toward green energy.

What to Watch Next

The government is expected to officially introduce policy measures specifically targeting lithium and nickel processing while working with state administrations to finalise designated park locations.

Frequently Asked Questions

Which states will host the critical mineral processing parks?

The four designated states planned for the parks are Gujarat, Maharashtra, Andhra Pradesh, and Odisha.

Why are lithium and nickel being prioritised first?

Mines Secretary Keshav Chandra explained that lithium and nickel are being fast-tracked because they are crucial components for battery manufacturing, which is considered a primary driver of global future growth.

What is the financial outlay for the National Critical Mineral Mission?

The mission has a total approved outlay of Rs 34,300 crore over seven years, comprising Rs 16,300 crore from the central government and Rs 18,000 crore from public sector enterprises.

Source: timesofindia.indiatimes.com