The Ministry of Mines has granted eligibility to LICO Materials Private Limited under the Incentive Scheme for Promotion of Critical Mineral Recycling, a pillar of the National Critical Mineral Mission (NCMM), enabling the Mumbai-based company to recover lithium, nickel, and cobalt from end-of-life lithium-ion batteries at its Karnataka facility, with a committed investment of ₹240 crore and an annual processing capacity target of 10,000 tonnes.

LICO was selected from hundreds of applicants by the Jawaharlal Nehru Aluminium Research Development and Design Centre (JNARDDC), the government's designated Project Management Agency. The company qualifies for a 20% Capital Expenditure subsidy and a multi-year Operational Expenditure subsidy linked to incremental commercial sales through FY 2030–31.

The NCMM scheme restricts eligibility to companies that perform chemical extraction of critical minerals. Companies that only collect, dismantle, or shred batteries do not qualify. LICO's selection is based on its technical expertise in battery chemistry and hydrometallurgy.

"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. "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."

The Karnataka 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 extraction capacity across two adjacent plants in KIADB, Karnataka — one for mechanical shredding and classification of battery packs, the other for critical mineral extraction. The project targets 99% battery-grade purity for recovered lithium, nickel, and cobalt across LFP, LCO, and NMC cell chemistries.

The NCMM is backed by a ₹1,500 crore national outlay and targets quadrupling India's recycling capacity from approximately 100,000 TPA to 400,000 TPA by 2030. India currently sources battery critical minerals predominantly from East Asia, which dominates global processing of lithium, cobalt, and graphite.

LICO Materials was founded in 2021. Its end-of-life lithium-ion battery recycling and refurbishing plant in Bengaluru has an input capacity of 4 GWh per annum.