India's first lithium refinery, which will process lithium ore to produce battery-grade material, will be set up in:

Gujarat

The correct answer is Option (4) → Gujarat

India's first lithium refinery is planned to be set up in Gujarat. Manikaran Power Limited, a power trading and renewable energy company, is behind this project. While they haven't finalized the exact location, they are considering areas near the port in Gujarat for this refinery.