Duty Cut On Capital Goods Used In Making LI Battery

New Delhi: Finance Minister Nirmala Sitharaman on Saturday proposed to extend duty exemptions on capital goods used in the production of lithium-ion batteries.

The move is aimed at aiding domestic manufacturing of lithium-ion batteries, a key component in electric vehicles and mobile phones. "To the list of exempted capital goods, I propose to add 35 additional capital goods for EV battery manufacturing, and 28 additional capital goods for mobile phone battery manufacturing," she said.

This will boost domestic manufacture of lithium-ion batteries, both for mobile phones and electric vehicles, the finance minister said while presenting her record 8th straight Budget. Grant Thornton Bharat Partner and Auto & EV Industry Leader Saket Mehra said that a reduction in customs duty on lithium will significantly lower input costs for manufacturing lithium-ion batteries in India, providing a much-needed boost to the country's emerging electric vehicle sector.