LICO Materials Secures NCMM Grant to Expand Critical Mineral Recovery Capacity

LICO Materials, a battery circularity company building a fully integrated critical mineral recovery ecosystem, has received an eligibility grant from the Ministry of Mines under the Incentive Scheme for Promotion of Critical Mineral Recycling, a core pillar of the National Critical Mineral Mission (NCMM). The grant letter issued by the Jawaharlal Nehru Aluminium Research Development and Design Centre (JNARDDC), the government’s designated Project Management Agency, places LICO among 58 companies selected nationwide to build India’s domestic urban mining capability. 

Against a total committed investment of ₹240 crore, LICO’s 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, making it one of the more substantial commitments within its category.

LICO was selected from among hundreds of applicants, reflecting the company’s deep technical expertise in battery chemistry and hydrometallurgy and the rigor of its execution roadmap. The NCMM scheme sets a high bar: only companies with demonstrated capability to perform actual chemical extraction of critical minerals qualify. LICO’s selection signals that the government views it not merely as an aspirant but as a credible delivery partner in India’s minerals strategy.

This recognition by the Ministry of Mines and NCMM is government’s validation that what we are building in Karnataka is what India needs,” said Gaurav Dolwani, CEO of LICO Materials Private Limited. “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. We are grateful for this recognition and committed to delivering on every milestone.”

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 & battery manufacturing.

The project is classified as a brownfield expansion, building 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; of which one dedicated to mechanical shredding and classification of battery packs, the other to the critical mineral extraction process itself. The NCMM scheme deliberately excludes companies that merely collect, dismantle or shred batteries; only those performing actual chemical extraction of minerals qualify for incentives.

India’s entire battery critical mineral supply chain runs through East Asia which is the dominant global processor of lithium, cobalt and graphite. As geopolitical tensions increasingly threaten the stability of global mineral supply chains, domestic recycling-led production is an industrial security imperative.

LICO’s recognition under the NCMM is a direct government response to that reality. The scheme, backed by a ₹1,500 crore national outlay, targets quadrupling India’s recycling capacity from approximately 100,000 TPA today to 400,000 TPA by 2030. LICO’s 10,000 TPA hydrometallurgical expansion in Karnataka is a measurable contribution to that national target.