Parliament passes Mines and Minerals Amendment Bill 2025 to boost critical mineral production

 

Parliament  passed the Mines and Minerals (Development and Regulation) Amendment Bill, 2025, aimed at promoting sustainable mining, zero-waste practices, and advancing the objectives of the National Critical Mineral Mission. 

 

 

Union Minister for Coal and Mines, G. Kishan Reddy, said the government is committed to transparency in the mining sector, with production enhanced through the use of modern technology.

Under the National Critical Mineral Mission, the government has identified 24 critical minerals and is promoting domestic production through onshore and offshore exploration. The first auction of offshore mineral blocks, including polymetallic nodules in the Andaman Sea, was launched in November 2024. India is also exploring critical minerals abroad, signing agreements with countries like Argentina and Zambia to facilitate resource development.

 The bill empowers the government to facilitate mineral trading through exchanges, allow the sale of mineral dumps to reduce environmental hazards, and promote extraction of deep-seated minerals.

The legislation also expands the scope of the National Mineral Exploration Trust, renaming it as the National Mineral Exploration and Development Trust, and increases the royalty contribution from two to three per cent. It provides mechanisms to include new minerals in existing leases and incentivises the production of critical and strategic minerals.

Officials highlighted the significance of these reforms amid global supply chain challenges for critical minerals, with the Ministry of External Affairs and the Ministry of Mines actively engaging in bilateral and multilateral cooperation to secure stable supplies.

Agreements have been signed with countries including Australia, Argentina, Zambia, Peru, Zimbabwe, Mozambique, Malawi, and Côte d’Ivoire, as well as international organisations such as the International Energy Agency.

Customs Duty Exemption on Lithium & other rare minerals to Boost EV Sector Growth in India

 

The proposed exemption in customs duty on import of lithium, cobalt and other rare minerals in the Union Budget 2024-25 is likely to lower the battery production cost and help in making electric vehicles more affordable for the buyers.

 Finance Minister Nirmala Sitharaman while presenting the Union Budget for 2024-25 proposed to fully exempt customs duties on 25 critical minerals and reduce Basic Customs Duty (BCD) on two of them.

This will provide a major fillip to the processing and refining of such minerals and help secure their availability for these strategic and important sectors, she noted. Minerals such as Lithium, copper, cobalt and rare earth elements are critical for sectors like nuclear energy, renewable energy, space, defense, telecommunications, and high-tech electronics, Sitharaman stated.

Exemption of customs duty on import of lithium, cobalt and other rare minerals and extension of concessional customs duty on Li-Ion cells till March 2026 and withdrawal of equalization levy of 2 per cent on e-transactions is expected to propel the growth of the Indian auto industry. .

The move is likely to encourage few players to indigenise battery production in India.The industry was not expecting a lot but was definitely looking for some announcements with respect to FAME III subsidies, and other direct benefits for BEV/ NEV (New Electric Vehicle). One  have to wait to see if there are any further relaxations in the future by the FM or by the GST Council.

The strategic move will significantly impact India's EV market by lowering production costs and enhancing competitiveness.

CATL launches a battery which can charge in Just 10 minute to replenish 600 KM range.

 

On April 25th, CATL  released the Shenhang PLUS battery, which is the world's first phosphate iron lithium battery to achieve a range of 1000 kilometers, and supports 4C ultra-fast charging, with the ability to replenish 600 kilometers of energy in just 10 minutes.

The  Shenhang PLUS battery uses independently developed three-dimensional honeycomb materials to improve the energy density of the negative electrode and control the volume expansion during charging and discharging. 

At the same time, it pioneers an integrated shell structure, greatly improving space utilization. The battery system is optimized on the basis of CTB 3.0, with a 7% increase in volume efficiency and an astonishing energy density of 205Wh/kg.

Indian Oil, Panasonic Energy enter pact to make lithium cells.

 

Indian Oil ,India’s biggest Oil company  announced that it has signed a binding term sheet with Panasonic Energy Co. to form a JV  for manufacturing cylindrical lithium-ion cells in India.

The deal was made in anticipation of demand for batteries for two-and three-wheel vehicles as well as energy storage systems, in Indian markets.

State-owned IOCL is aiming to achieve net-zero carbon emissions by 2046, aligning with the Indian government's plan to achieve net-zero for the country as a whole by 2070.

"Through its partnership with Indian Oil, Panasonic Energy aims to address environmental challenges, such as reducing CO2 emissions, as well as to contribute to establishing a complete supply chain ecosystem for improving India's self-reliance and fortifying India's position in the global energy landscape," it said.

This JV  will also lead to the growth of India's battery industry by enhancing cell technology and creating domestic demand for raw materials and new entrants.

"Leveraging its expertise in battery development and manufacturing, Panasonic Energy strives to contribute to the growth of the lithium-ion battery industry and India's energy transition, while pursuing its mission of helping to build a sustainable society," it said.