Vedanta Urges India to Seek Removal of Import Taxes on EV Battery Component
India's metals-to-oil conglomerate Vedanta has called on the Indian government to urge Japan and South Korea to amend their trade agreements to remove import duties on nickel sulphate, a key component used in electric vehicle (EV) batteries. According to a source familiar with the matter, Vedanta, along with several smaller firms, processes nickel ores sourced mainly from Australia, Indonesia, and Turkey into nickel sulphate before exporting it to these countries.
Vedanta, led by billionaire Anil Agarwal and part of London-based Vedanta Resources, has petitioned the Indian government to revise the "rules of origin clause" in India’s Comprehensive Economic Partnership Agreements (CEPAs) with Japan and South Korea. Currently, nickel sulphate exports to Japan are subject to a 3.9% import tax, while shipments to South Korea face a 5% duty. Adjusting the rules of origin in these trade agreements could eliminate these tariffs, making Indian exports more competitive.
The source, who requested anonymity, indicated that Vedanta’s appeal aims to align with India's goal of enhancing its role in cleaner technologies. India, which is the world's third-largest carbon emitter, considers nickel vital for its future in cleaner transport technologies. However, unlike Japan and South Korea, India’s EV market is still developing, resulting in lower domestic demand for nickel sulphate.
Vedanta’s push to expand its market presence in Japan and South Korea comes as these nations have stronger consumption of nickel sulphate compared to the burgeoning Indian EV sector. Both India's trade ministry and Vedanta have not yet responded to requests for comment.
