India’s ambition to become a global clean-energy powerhouse depends on reducing its dependency on imported lithium. Building a robust, end-to-end domestic lithium supply chain—with integrated refining at its core—is key to meeting ambitious goals in electric mobility, energy storage, and sustainable industrial growth.

1. Why Refining Matters

Currently, India imports nearly 100% of its lithium, with the majority coming from China, which controls 60–70% of global refining capacity. Without domestic refining infrastructure, India remains exposed to geopolitical risks, supply bottlenecks, and price volatility. Local refining converts raw lithium into high-purity derivatives vital to battery cell production—bridging the upstream and downstream supply chain gap.

2. Vardhaan Lithium’s Refining Breakthrough

Vardhaan Lithium (I) Pvt. Ltd. is spearheading India’s efforts in this domain. Located in Butibori, Nagpur, the company is developing the country’s first integrated lithium refinery and Li‑ion battery manufacturing complex on a sprawling 500-acre site.

• Refining Capacity: 60,000 tonnes/year of lithium processed.

• Battery Output: 20 GWh/year capacity for EV and energy storage applications 

By vertically integrating refining and battery production, Vardhaan mitigates supply risks and provides scale‑efficient access to high‑purity lithium derivatives directly on Indian soil.

3. Broader Implications for India’s Energy Landscape

Clean‑Tech Sovereignty & Self‑Reliance

With refining capabilities in place, India can begin replacing imports—supporting national initiatives like ‘Make in India’ and reinforcing industrial autonomy.

Supply Chain Integration & Ecosystem Growth

The project anchors a clean-tech cluster in Maharashtra—encouraging ancillary industries, logistics, recycling, and R&D hubs, ultimately fostering innovation and infrastructure depth.

Economic & Employment Advantages

The refinery is expected to generate thousands of jobs (direct and indirect), driving socio-economic development in and around Nagpur while enhancing regional manufacturing resilience.

4. Strategic Alignment & Future Outlook

India’s strategic roadmap includes liberalizing mining regulations, incentivizing critical mineral projects, and fostering global partnerships for mineral sourcing and processing technology transfer. Refining-focused initiatives like Vardhaan’s project are an essential fulcrum in building the nation’s upstream and midstream lithium capabilities.

As the government promotes Production Linked Incentives (PLI) for Advanced Chemistry Cells and promotes research through innovation grants, domestic refining becomes indispensable in achieving scale and green growth targets toward 2030 and beyond.

Refining forms the keystone of India’s lithium supply chain transformation. By anchoring downstream production locally, refining initiatives—led by Vardhaan Lithium—are critical to unlocking self-reliance, scale, and sustainability in India’s pursuit of clean energy leadership.