Today, on October 11, the Union Cabinet convened to address crucial matters that can impact India’s auto sector, particularly concerning lithium and other mineral royalty rates. Lithium, a pivotal component in electric vehicle (EV) batteries, is in high demand globally and within India’s burgeoning EV market.
Impact on India’s Auto Sector and Lithium Royalty Rates
Insiders suggest that a decision on setting royalty rates for lithium and other minerals might transpire during this cabinet meeting. The proposed royalty rate for lithium stands at 3 percent, aligning with a similar rate for Niobium. Additionally, there’s a proposal for a 1 percent royalty on other rare earth minerals slated for auction. Notably, the current royalty rate for unlisted minerals is set at 12 percent, a figure the government seeks to streamline through commercial auctions.
Monitoring stock activities of mining companies like NALCO, Hindustan Copper, and GMDC is advised. These companies are significantly involved in mining lithium and other minerals, making their actions vital to the outcome of the potential royalty rate decisions.