Budget 2025: Government Grants Duty Exemption on Cobalt, Lithium-Ion Battery Waste, and 12 Essential Minerals

Finance Minister Nirmala Sitharaman, while presenting the Union Budget 2025-26, declared a complete waiver of the Basic Customs Duty (BCD) on cobalt powder, lithium-ion battery waste, lead, zinc, and 12 other essential minerals.

She said, “I propose expanding the list of exempted capital goods to include 35 additional items for EV battery manufacturing and 28 additional items for mobile phone battery production. This will significantly boost the domestic manufacturing of lithium-ion batteries for both mobile phones and electric vehicles.”

Venu Nuguri, MD & CEO—India & South Asia, Hitachi Energy, said, “India’s National Manufacturing Mission represents a key initiative in strengthening the country’s energy and manufacturing industries. By focusing on high-voltage transmission equipment, solar PV cells, electrolysers, and grid-scale batteries, this mission is set to significantly support power sectors and utilities. We are particularly optimistic about the emphasis on expanding intra-state transmission capacity and generating green employment opportunities. Moreover, India's goal of reaching 100 GW of nuclear energy by 2047, supported by strong public-private collaborations and the removal of civil nuclear liability, demonstrates the country's dedication to its energy transition objectives. The full exemption of Basic Customs Duty (BCD) on cobalt powder, lithium-ion battery waste, and 12 other essential minerals, along with the duty exemption on lithium-ion batteries, will greatly boost India's manufacturing potential, especially in the clean energy sector.”

The Economic Survey 2024-25 emphasised the importance of developing domestic energy sources for electric vehicles. It called for policies that would reduce supply chain risks and foster self-sufficiency by boosting research and development in advanced battery technologies, such as sodium-ion and solid-state batteries.