Budget 2025: customs duty exemption on lithium-ion battery scrap
A small line in the budget with big implications for battery recycling economics in India.
Advertisement
Finance Minister Nirmala Sitharaman announced a customs duty exemption on lithium-ion battery scrap in Union Budget 2025 — a targeted move to lower feedstock costs for India's battery recycling and manufacturing industry.
What changed
- Lithium-ion battery scrap becomes duty-free on import
- Intended to reduce costs for recyclers and encourage domestic battery production
- Stocks of battery makers (Exide, Amara Raja) rose on the announcement
India's domestic battery waste stream is still too small to feed the recycling industry at scale. Importing Li-ion scrap — mostly from end-of-life devices and battery packs — fills the gap until India's own EV and electronics waste volumes mature.
The full policy picture
The duty exemption sits inside a larger battery strategy:
- PM E-DRIVE — demand subsidies for EVs (demand side)
- Critical Mineral Recycling incentive (₹1,500 Cr, Sep 2025) — capex/opex subsidies for recyclers (supply side)
- Customs duty exemption on scrap — cheaper feedstock (input side)
Advertisement
Get these updates in your inbox
Funding rounds, tenders and fleet moves — twice a week. Free.
Free weekly briefing
Get India's EV funding, tender and fleet signals in 5 minutes
Join founders, fleet operators, battery companies and investors reading Mera EV Intelligence.
No spam. Unsubscribe anytime.