Budget 2024 was presented by Finance Minister Nirmala Sitharaman on Tuesday. During this, she made many big announcements, one of them is about lithium. In this year’s budget, the import duty on lithium and other essential minerals has been reduced.
This decision of the government will make the raw material for manufacturing lithium-ion batteries available cheaply in India. As a result, the production of lithium-ion batteries is expected to boom in the domestic market and the price of the battery will also come down.
Electric vehicle industry will benefit
According to media reports, if domestic lithium ion batteries get a boom in the Indian market, then a reduction in battery prices can also be seen. In such a situation, the Indian Electric Vehicle (EV) industry will benefit.
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Also read: Gift in Budget 2024, smartphones and chargers will become cheaper, announcement of reducing custom duty
electric vehicle battery cost
IndiaToday has mentioned in its report for reference that the cost of battery in an electric vehicle is 35% to 40% of the total cost. In such a situation, if the price of battery decreases, then the price of EV will also decrease and the EV industry will get a boom
Custom duty removed on 25 minerals
During the speech of the Union Budget 2024-25, Union Finance Minister Nirmala Sitharaman said that she is going to completely remove the custom duty on 25 minerals. Apart from this, the basic custom duty (BCD) is going to be reduced on 2 minerals used in lithium batteries. BCD on Silicon Quartz has been reduced from 7.5 percent to 5 percent, while on Silicon Dioxide it has been reduced to 2.5 percent.
Also read: Budget 2024: Mobile recharge plans may get more expensive, 5G rollout will be delayed now!
The Finance Minister said that the custom duty on lithium, copper, cobalt and rare earth elements and other elements, which are used in nuclear energy, renewable energy, space, defense and telecommunication and high tech electronics, is going to be reduced.