Lithium Import tax plans by Indian Government

Indian Government plans import tariffs on lithium ion cells. This has come after Sino- India tensions and government’s  decision to ban 59 Chinese apps.

The decision was taken to boost Indian local markets and cut trade deals with China. So to reduce dependency on China.

Earlier, Prime Minister Narendra Modi has hailed the concept of Atma Nirbhar Bharat. In this view the Government is planning to put tariffs on many foreign goods. Wspecially China, so that dumping of Chinese goods can be prevented.

For instance, China capture the solar equipments manufacturing market by leveraging first mover advantage. In order to avoid the same, India has made this crucial step.

Lithium energy is considered to clean source of energy like solar and wind energy. Lithium ion cells are indispensable material in batteries,laptops,electric vehicles, phones and mobiles.  They are considered to be building blocks of the digital unit.

An anonymous official said that due to geopolitical reasons.and avoid China’s dominance. Such crucial step of imposing import tax is being planned. However due to COVID-19 this plan can be delayed.

Lithium ion cell manufacturing is dominated by China globally. India is self sufficient in manufacturing battery storage packs rest it is dependent on Chinese imports. India has targeted to become self sufficient by 2025 across whole value chain comprising raw material processing, and manufacturing of separators, cathodes, electrolyte, anode, cell and finally the battery storage packs