The Union Budget 2025 has introduced a significant push for domestic manufacturing and value addition, particularly in the lithium-ion battery sector. With a growing emphasis on electric mobility and self-reliance, Finance Minister Nirmala Sitharaman announced the addition of:
35 new capital goods under customs tax exemption for EV battery manufacturing
28 new capital goods under the exemption for mobile phone battery manufacturing.
"In a major boost to domestic manufacturing, the government has extended customs duty exemptions to an additional 64 capital goods, which were previously subjected to Basic Customs Duty (BCD) ranging from 7.5% to 15%. With this exemption, manufacturers can now access these essential goods at lower costs, fostering greater investment, technological advancement, and local value addition in India’s rapidly growing battery and electronics sectors."
Here is the list of capital goods exempted fully along with a notification snapshot:
28 new capital goods under the exemption for mobile phone battery manufacturing. | |||
| Sr. No. | Name of Capital Goods | Sr. No. | Name of Capital Goods |
| 1 | Auto-taping machine | 15 | Film / Myler tearing machine |
| 2 | Auto-packing machine | 16 | Auto unloading Machine |
| 3 | Mylar sticking machine | 17 | Mylar slitting machine |
| 4 | Auto magazine load machine | 18 | Foil slitting machine |
| 5 | Constant temperature capacity machine | 19 | Dust collector |
| 6 | Separator coating machine | 20 | Electrode packing machine |
| 7 | Roller cleaning machine | 21 | Electrode rewinding machine |
| 8 | Formation machine | 22 | Calendar printing machine |
| 9 | Automatic tapping machine | 23 | Electrolyte tapping machine |
| 10 | Stacking machine | 24 | Strip Tape machine |
| 11 | Separator trimming machine | 25 | Mixing or agitating substances machine |
| 12 | Tab transfer welding & winding machine | 26 | Aluminum foil bag edge cutting machine |
| 13 | Ultrasonic Tray cleaning machine | 27 | Ultrasonic cleaning machine |
| 14 | Gasket automatic cleaning machine | 28 | Cell slicing machine |
35 new capital goods under customs tax exemption for EV battery manufacturing | |||
| S.No. | Name of Capital Goods | S.No. | Name of Capital Goods |
| 1 | Solvent Recovery System | 19 | 2nd Helium Test System |
| 2 | Heat Recovery System | 20 | Wire Feeding and Rework Machine |
| 3 | Effluent Treatment System | 21 | Cell Aging Machine |
| 4 | Electrolyte Injection Machine | 22 | Negative Pressure Formation |
| 5 | Helium Injection Machine | 23 | Cell Formation - Cell Capacity and SOC |
| 6 | Nail Inserting Machine | 24 | Cell Formation - DCIR |
| 7 | Nail Pulling Machine | 25 | Cell Formation - Cell Tray Plastic |
| 8 | Injection Hole Cleaning Machine | 26 | Cell Formation - Cell Tray |
| 9 | Cell Baking & Cooling Machine | 27 | Cell Formation - Metallic Formation Machine |
| 10 | Jelly Roll Pairing Machine | 28 | Cell Formation - Other Trays |
| 11 | Mylar Wrapping Machine | 29 | Film Wrapping and Final Inspection |
| 12 | Cell Sorting Line | 30 | Tap to Top Cap Welding |
| 13 | Laser Pin Welding | 31 | Fibre Temperature Detection System |
| 14 | Laser Notching & Winding | 32 | Water Sprinkler System |
| 15 | Ultrasonic Welding | 33 | Rack |
| 16 | Load in Can | 34 | Tape Coding |
| 17 | Top Cover Laser Welding | 35 | Wire Filling and Welding Machine |
| 18 | 1st Helium Test System | ||
This strategic move is set to enhance India's production capabilities, reduce import dependency, and drive innovation in the clean energy ecosystem.
Encouraging Local Production:
The exemption lowers manufacturing costs, making India a competitive hub for battery production.
Strengthening the EV Ecosystem:
Affordable lithium-ion batteries will accelerate EV adoption and promote sustainable transportation.
Attracting Investments & Generating Employment:
Lower costs and improved infrastructure will bring in global investors and create new jobs in the sector.
Enhancing Technological Innovation:
Encouraging domestic R&D in battery technology for longer-lasting, more efficient, and cost-effective solutions.
#EVRevolution #MakeInIndia #Budget2024 #ElectricVehicles #LithiumIonBatteries #SustainableFuture #ManufacturingIndia #Innovation #AtmanirbharBharat
