LICO Materials has been selected under the Ministry of Mines’ Incentive Scheme for Promotion of Critical Mineral Recycling, a key component of India’s National Critical Mineral Mission (NCMM). The company is among 58 firms chosen nationwide to develop domestic urban mining and critical mineral recovery capacity.
The scheme, backed by a total outlay of INR 1,500 crore, aims to expand India’s recycling capacity for critical minerals from lithium-ion batteries, e-waste and industrial scrap—thereby reducing import dependence and supporting clean energy and advanced manufacturing sectors.
LICO Materials, which focuses on battery circularity and critical mineral recovery, has committed to invest INR 240 crore in its Karnataka facility that will produce battery-grade critical minerals from end-of-life lithium-ion batteries. The project qualifies for a 20% capital expenditure (CapEx) subsidy and a multi-year operational expenditure (OpEx) subsidy linked to incremental commercial sales through FY 2030-31.
“We are not just recycling batteries but are producing battery-grade lithium, nickel & cobalt on Indian soil, from Indian waste batteries, for India’s cell & battery manufacturers. This is critical when global mineral supply chains are fracturing along geopolitical lines,” said Gaurav Dolwani, CEO of LICO Materials.
LICO proposes to extract critical materials from end-of-life batteries that India currently imports from China. Working across LFP, LCO and NMC cell chemistries, LICO’s approved project targets annual recovery of lithium, nickel, cobalt at 99% battery grade purity enabling their reintegration into the cell and battery manufacturing.
The project, classified as a brownfield expansion, builds on LICO’s existing 25,000 TPA upstream mechanical processing capacity. The hydrometallurgical expansion will add 10,000 TPA of material extraction capacity across two adjacent plants in KIADB, Karnataka, with one dedicated to mechanical shredding and classification of battery packs, and the other to the critical mineral extraction process itself.
The NCMM scheme excludes companies that merely collect, dismantle or shred batteries; only those performing actual chemical extraction of minerals qualify for incentives.
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