India, Nov. 5 -- With an eye on reducing dependence on imported critical minerals, the Union Cabinet has approved a scheme to set up domestic lithium and nickel processing facilities in the country.

Called the Capex Support Scheme to Promote Critical Mineral Processing, the programme has been approved with a financial outlay of Rs.2,814 Cr over a period of five years from FY27 to FY31.

The outlay will pave the way for setting up four plants, two each for lithium and nickel processing. In a statement, the government said that the units will process lithium and nickel ores or intermediary products into high-purity compounds. Cobalt is also expected to be recovered as a by-product of nickel production.

Under the scheme, beneficiaries will...