India is set to transform its energy and industrial sectors with the establishment of its first lithium refinery and battery manufacturing plant in Nagpur, Maharashtra. The facility will produce 60,000 tonnes of lithium annually and 20 GWh of batteries. This landmark project, backed by a significant investment of Rs. 42,532 crore, is designed to boost the country’s self-sufficiency in essential energy resources and strengthen its position on the global stage.
A major lithium refinery project, with an investment of Rs 42,532 crore, is set to be launched in Nagpur, this year. The Maharashtra government and Vardhaan Lithium (I) Pvt. Ltd signed an agreement in Davos, Switzerland, to establish the refinery at Butibori in Nagpur.
According to Vardhaan Lithium, this project will mark a significant shift for India’s energy and industrial sectors with the creation of the country’s first lithium refinery and battery manufacturing plant in Nagpur. The project is aimed at enhancing India’s self-reliance in key energy resources and boosting its global position.
Nagpur lithium refinery project- the goals
Sunil Joshi, the chairman of Vardhaan Lithium, informed that the 500-acre facility is designed to address India’s critical need to reduce dependency on lithium imports by developing a strong domestic supply chain. The refinery will have the capacity to process 60,000 tonnes of lithium annually and produce 20 GWh of batteries, supporting the country’s energy needs for electric vehicles, homes, and industries.
He further stated that this advanced facility will not only meet India’s growing demand for lithium-based products but also help position the nation as a global leader in clean energy solutions. Aligned with Prime Minister Narendra Modi’s ‘Make in India’ initiative, the project highlights India’s commitment to self-sufficiency in vital sectors.
With collaboration from top technology partners in the USA and Europe, Vardhaan Lithium ensures that the products manufactured at the Nagpur facility will meet international standards.
The project is expected to transform India’s energy landscape by providing a sustainable, homegrown supply of refined lithium, especially as global demand for lithium-ion batteries soars with the rise of electric vehicles and renewable energy systems. The mega facility is also expected to create thousands of direct and indirect jobs, stimulating the local economy and fostering socio-economic growth in the region. Its large scale will also attract related industries, helping to build a clean energy manufacturing ecosystem in Maharashtra.
A step toward reducing lithium import
Lithium and its compounds have diverse applications. For instance, its high specific heat makes it valuable in heat transfer systems. It is used in special glasses and ceramics, such as the Mount Palomar telescope’s 200-inch mirror. As the lightest metal, lithium is alloyed with materials like aluminium and copper to create lightweight, strong metals for aircraft. Lithium hydroxide helps remove carbon dioxide from spacecraft atmospheres, while lithium stearate is a versatile lubricant. Lithium carbonate is also commonly used to treat manic depression disorder.
From March 2023 to February 2024, India imported 54,402 shipments of lithium, marking a 19% increase compared to the previous year. The majority of these imports come from China, Japan, and the United States. On the global stage, India ranks as the top importer of lithium, with 273,470 shipments, followed by the United States at 169,924 shipments and Vietnam with 153,502 shipments.
India currently depends on imports to fulfill nearly all of its 15 GWh demand for lithium-ion batteries. However, this demand is expected to surge to 54 GWh by FY27 and 127 GWh by FY30, driven by the rising adoption of electric vehicles and ongoing efforts to decarbonize the energy grid.
Having said that, the establishment of this lithium refinery and battery manufacturing facility at Nagpur, will significantly reduce India’s reliance on lithium imports, leverage advanced technology, and bolster domestic manufacturing, empowering India to achieve energy independence while contributing to the global fight against climate change.
