Union Budget 2025: Centre To Exempt Duty On Cobalt Powder, Lithium-Ion Battery, 12 Critical Minerals

Union Budget 2025: Centre To Exempt Duty On Cobalt Powder, Lithium-Ion Battery, 12 Critical Minerals

SUMMARY

FM Nirmala Sitharaman has announced that the government will fully exempt Basic Customs Duty (BCD) on cobalt powder, scrap of lithium-ion batteries, LED, zinc, and 12 other critical minerals

The new duty exemptions aim to secure the availability of key materials for manufacturing in India, thereby fostering growth in industries reliant on these minerals

It is pertinent to note that these minerals are crucial in the manufacturing of batteries used in consumer electronics devices, electric vehicles (EVs), drones, various energy storage devices, and more

In a major move to boost India’s manufacturing capabilities, FM Nirmala Sitharaman has announced that the government will fully exempt Basic Customs Duty (BCD) on cobalt powder, scrap of lithium-ion batteries, LED, zinc, and 12 other critical minerals.

In the July 2024 Budget, Sitharaman had fully exempted BCD on 25 critical minerals that are not domestically available. She had also reduced the BCD on two other such minerals to provide a major fillip to their processing, especially by MSMEs. Now, in the Union Budget 2025, she has proposed to fully exempt cobalt powder and waste, scrap of lithium-ion batteries, lead, zinc, and 12 other critical minerals.

It is pertinent to note that these minerals are crucial in the manufacturing of batteries used in consumer electronics devices, electric vehicles (EVs), various energy storage devices, and more.

“I propose to fully exempt cobalt powder and waste, the scrap of lithium-ion battery, lead, zinc and 12 more critical minerals. This will help secure their availability for manufacturing in India and promote more jobs for our youth,” she added.

The measure is also expected to provide a significant boost to the MSME sector involved in mineral processing.

The new duty exemptions aim to secure the availability of key materials for manufacturing in India, thereby fostering growth in industries reliant on these minerals.

The proposal also covers waste and scrap of critical minerals including antimony, beryllium, bismuth, cobalt, cadmium, molybdenum, rhenium, tantalum, tin, tungsten, zirconium, and copper scrap, which will now be covered under the tariff items.

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Union Budget 2025: Centre To Exempt Duty On Cobalt Powder, Lithium-Ion Battery, 12 Critical Minerals-Inc42 Media
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