Vedanta Seeks Trade Duty Changes
Vedanta, the major Indian metals-to-oil conglomerate, has called on the Indian government to negotiate with Japan and South Korea to remove import duties on nickel sulphate, a key component used in electric vehicle (EV) batteries. This plea is aimed at revising the “rules of origin clause” in India’s Comprehensive Economic Partnership Agreements (CEPAs) with these countries.
Current Import Duties
Currently, shipments of nickel sulphate from India to Japan face a 3.9% import duty, while those to South Korea are taxed at 5%. Removing these tariffs could significantly benefit Vedanta, which, along with smaller firms, exports nickel sulphate produced from ores imported mainly from Australia, Indonesia, and Turkey.
Strategic Push
Vedanta’s request highlights India’s lower domestic demand for nickel sulphate, compared to the high consumption rates in Japan and South Korea. India produces approximately 8,160 metric tons of nickel sulphate annually but consumes only around 2,500 metric tons. In contrast, South Korea is the largest importer of India’s nickel sulphate, with smaller exports also going to Belgium, Bangladesh, and the UAE.
India’s Trade and EV Market
While India is a major player in nickel production, its EV market is still developing. By revising trade agreements, India aims to strengthen its position in the global EV battery market and reduce reliance on domestic demand for nickel sulphate.
Vedanta’s initiative underscores the strategic importance of adjusting trade policies to align with global market needs and enhance India’s export competitiveness.
Reporting and Sources
The information was reported by Neha Arora and additional reporting was done by Mai Nguyen, with editing by Mayank Bhardwaj and Philippa Fletcher. The Indian trade ministry and Vedanta have yet to comment on the matter.