Boosting Domestic EV Battery Production: A Strategic Economic Move

Finance Minister Nirmala Sitharaman proposes extending duty exemptions on capital goods for lithium-ion battery production. This move targets enhancing domestic manufacturing, reducing costs, and supporting the electric vehicle sector by facilitating local production and decreasing import reliance on essential components.

In a decisive step to bolster the electric vehicle sector, Finance Minister Nirmala Sitharaman announced on Saturday an extension of duty exemptions on capital goods used in manufacturing lithium-ion batteries.

This strategic decision aims to stimulate domestic production of crucial battery components for both mobile phones and electric vehicles, as highlighted during her eighth consecutive Budget presentation. The minister proposed including 35 new capital goods for EV battery production and 28 for mobile phone batteries on the exemptions list.

Industry leaders such as Saket Mehra from Grant Thornton Bharat and Nirmal K Minda of Uno Minda applauded the move, underscoring its potential to reduce costs and dependency on imports, and drive local manufacturing capabilities. Revamp Moto's CEO emphasized the importance of fully exempting customs duty on critical raw materials like cobalt and lithium waste, viewing it as pivotal for advancing technology and job creation within the country.

(With inputs from agencies.)