Archive · 13 Nov 2025
India Approves Lower Royalty Rates for Critical Minerals to Boost EV Battery Production
India's government has decided to lower the fees, called royalty rates, for mining important minerals like graphite.
Graphite is a key ingredient used in electric car batteries.
Previously, the fees for mining graphite were based on how much was dug up, but now they will be based on the selling price, with lower rates for higher quality graphite.
This change is also applied to other minerals like caesium, rubidium, and zirconium, which are used in high-tech applications.
The goal is to make mining these minerals in India more attractive, so the country can produce more of them locally.
This will help India rely less on other countries for these materials and strengthen its own supply chains, especially for technologies like electric vehicles.
The Union Cabinet has approved new, rationalized royalty rates for critical minerals: caesium, graphite, rubidium, and zirconium.
New royalty rates include 2% for caesium and rubidium, 1% for zirconium, and 2% or 4% for graphite based on its fixed carbon content.
This move aims to boost domestic mining production and promote the auction of mineral blocks, potentially unlocking associated critical minerals like lithium.
Graphite is crucial for electric vehicle (EV) batteries, and India currently imports 60% of its graphite requirement.
The royalty for graphite has shifted from a per tonne basis to an ad valorem (percentage of selling price) system.
- Who
- The Union Cabinet
- What
- Approved the rationalization of royalty rates for critical minerals: caesium, graphite, rubidium, and zirconium.
- When
- Wednesday
- Where
- India
- Why
- To improve the energy supply chain, enhance security for critical minerals, increase domestic production, and promote the auction of mineral blocks.
Previous Royalty Structure
New Royalty Structure
Graphite Royalty Basis
Previous Royalty Structure
Royalty for graphite was previously based on a per tonne rate.
New Royalty Structure
New royalty for graphite is ad valorem, set at 2% or 4% of the average selling price (ASP) based on fixed carbon content.
Royalty Rates for Other Critical Minerals
Previous Royalty Structure
Not explicitly detailed, but implied to be higher or less conducive to production.
New Royalty Structure
Royalty rates for caesium, rubidium, and zirconium have been set at 2% of ASP, and for zirconium at 1% of ASP.
- Minerals Affected
- Caesium, Graphite, Rubidium, Zirconium
- Graphite Royalty Rate (>=80% fixed carbon)
- 2% of ASP
- Graphite Royalty Rate (<80% fixed carbon)
- 4% of ASP
- Caesium Royalty Rate
- 2% of ASP
- Rubidium Royalty Rate
- 2% of ASP
- Zirconium Royalty Rate
- 1% of ASP
- Graphite Import Dependence
- India imports 60% of its graphite requirement.
- Current Graphite Mines
- 9
Sources
Cabinet gives nod for rationalisation of royalty rates of graphite, caesium, rubidium, zirconium
Cabinet approves rationalisation of royalty rates of Graphite, Caesium, Rubidium, Zirconium minerals critical for green energy
Cabinet nod to royalty cut for critical minerals
Cabinet approves new royalty rates for four critical minerals
India’s Big Push To Boost Critical Mineral Production, Cut Import Dependence - A Reason For China To Worry?
