Union Budget 2024-25: The Finance Minister Nirmala Sitharaman in the Union Budget 2024-25 announced on Tuesday the establishment of Critical Mineral Mission to boost domestic production and overseas acquisition of critical mineral assets and their recycling.
With this initiative, an indirect boost is given to electric vehicle (EV) production in the country, as these minerals are the driving force for e-mobility and renewable energy. This policy also includes technology development, skilled workforce, extended producer responsibility framework, and a suitable financing mechanism.
In the interim budget presented in February 2024, the Finance Minister had hinted about the GoI’s strategy to promote energy security in terms of availability, accessibility and affordability.
Critical minerals such as lithium, copper, cobalt and rare earth elements (25 critical minerals) are exempted from custom duties. These minerals are applicable in sectors like nuclear energy, renewable energy, space, defence, telecommunications, and high-tech electronics.
This move is welcomed by the auto industry players as it can significantly boost the recycling of critical minerals in India along with its production. “Reduction in customs duty to nil on critical minerals such as lithium, copper, cobalt, nickel etc. will encourage cell manufacturing in the country and add to the evolving EV ecosystem in the country,” Shradha Suri Marwah, President ACMA, and CMD Subros, said.
Attero, a leading battery recycling company believes this policy can make India self-reliant in critical minerals and also a global recycling hub. “The announcement of the Critical Mineral Mission by the Finance Minister is expected to provide a significant impetus to the industry. The exemption of customs duties on 25 critical minerals provides a major fillip to the processing and refining sectors. These measures will significantly boost the processing and recycling industries, enabling India to become the recycling and critical minerals hub in the world,” Nitin Gupta, co-founder and CEO of Attero, said.This initiative not only supports the growth of the EV industry but also reinforces India’s commitment to sustainable mobility solutions driving positive change towards a cleaner and greener transportation ecosystem. “We applaud the Union Budget’s decision to exempt custom duties on critical minerals like lithium and cobalt. This pivotal move will substantially lower the production costs of battery cells, directly translating into more affordable electric vehicles (EVs) for consumers,” Pratik Kamdar, CEO and co-founder, Neuron Energy, said.
Along with that the Finance Minister announced that “I am also continuing with nil BCD on ferrous scrap and nickel cathode and concessional BCD of 2.5% on copper scrap.”
