A new scheme with a proposed outlay of about Rs 2,800 crore to provide capital expenditure (capex) support for the processing of critical minerals such as lithium and nickel ores is likely to be taken up by the Union Cabinet on Wednesday, The Indian Express has learnt.

According to sources aware of the development, the scheme, aimed at developing domestic critical mineral processing base, is likely to be focused on processing of lithium and nickel ores and intermediary products into high-purity compounds. Cobalt is expected to be recovered as a by-product of nickel production, the sources said.

Lithium, nickel and cobalt are important components for Li-ion batteries that power everything from smartphones to electric vehicles.

Sources said the scheme is likely to provide a capital subsidy of 30 per cent of eligible investment for setting up four processing plants — two lithium processing plants with a minimum capacity of 30 kilotonnes (kt) each and two nickel processing plants with a minimum capacity of 50…