LICO Materials Pvt Ltd, a battery circularity company focused on critical mineral recovery, has received an eligibility grant from the Ministry of Mines under the Incentive Scheme for Promotion of Critical Mineral Recycling, a key initiative under the National Critical Mineral Mission (NCMM).
The grant, issued through the Jawaharlal Nehru Aluminium Research Development and Design Centre (JNARDDC), places LICO among 58 companies selected across the country to strengthen India’s domestic urban mining and battery recycling capabilities.
Rs 240 crore investment plan approved
LICO’s approved project involves a total committed investment of Rs 240 crore and qualifies for a 20% Capital Expenditure (CapEx) subsidy along with a multi-year Operational Expenditure (OpEx) subsidy linked to incremental commercial sales through FY31.
The company said the approval reflects its technical capabilities in battery chemistry and hydrometallurgy, as the NCMM scheme only supports companies capable of undertaking actual chemical extraction of critical minerals.
Focus on battery-grade lithium, nickel and cobalt
LICO Materials CEO Gaurav Dolwani said the recognition validates the company’s efforts to build India’s domestic battery mineral recovery ecosystem.
“This recognition by the Ministry of Mines and NCMM is government’s validation that what we are building in Karnataka is what India needs. 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,” he said.
He added that strengthening domestic mineral recovery has become critical as global supply chains face increasing geopolitical disruptions.
Karnataka expansion to boost extraction capacity
LICO plans to recover critical materials from end-of-life batteries that are currently largely imported from China. The company works across multiple battery chemistries including LFP, LCO and NMC.
The approved brownfield expansion builds on LICO’s existing 25,000 tonnes per annum upstream mechanical processing capacity. The hydrometallurgical expansion will add 10,000 tonnes per annum of extraction capacity through two adjacent facilities in KIADB, Karnataka.
One facility will focus on battery shredding and classification, while the second plant will handle chemical extraction and purification of critical minerals.
The company said the recovered lithium, nickel and cobalt will achieve 99% battery-grade purity, enabling reintegration into domestic cell and battery manufacturing.
India pushes for mineral security
India currently remains heavily dependent on East Asia for processing critical battery minerals such as lithium, cobalt and graphite.
The NCMM scheme, backed by a national outlay of Rs 1,500 crore, aims to reduce this dependence by scaling India’s battery recycling capacity from around 100,000 tonnes per annum currently to 400,000 tonnes per annum by 2030.
LICO’s Karnataka expansion is expected to contribute directly towards achieving that target while strengthening India’s clean energy and electric mobility supply chain.