The cost of lithium-ion batteries constitutes a substantial portion of the overall price of electric cars. In India, these batteries are mostly imported, which has been a major factor driving up prices of EVs. However, with the recent waiver of customs duties on lithium-ion batteries in the Union Budget for 2024, there is a possibility that the prices of electric cars in India will see some decline.
During the announcement of the 2024 Budget, India's Finance Minister Nirmala Sitharaman declared a complete waiver of customs duties on 25 crucial earth minerals, including lithium, copper, and cobalt. This will directly benefit the electric vehicle industry in India, as the prices of these vehicles are expected to decline. Cobalt serves as an important element in a lithium-ion battery because it helps increase the battery density.
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