Budget 2024: Critical minerals push key to cross-industry value addition

livemint.com:

₹18,100 crore production-linked incentive (PLI) scheme for advanced chemistry cells (ACC) is nearly exhausted. Early gainers may include companies already approved under the ACC PLI such as Ola Electric Mobility, Reliance New Energy and Rajesh Exports.

Others who are waiting for PLI approval include Amara Raja’s advanced cells subsidiary, JSW Neo Energy and Waaree Energies. On Tuesday, finance minister Nirmala Sitharaman announced that a critical minerals mission will be set up “for domestic production, recycling of critical minerals, and overseas acquisition of critical mineral assets." “Its mandate will include technology development, skilled workforce, extended producer responsibility framework, and a suitable financing mechanism," the minister added.

Import duties that currently range from 2.5% to 10% on 28 critical minerals were scrapped, in an attempt to make cell manufacturing in India competitive. ACC PLI applicants could meet the domestic value addition goals under the scheme, in turn attracting specialized companies operating in the battery supply chain from global markets..

Three people aware of the developments said the new mission may be housed under the Ministry of Heavy Industries, and that it could raise financing for cell manufacturing. Consultations are likely with multiple industries, besides the Ministry of Electronics and Information Technology (Meity), they said.