 "Vedanta")
Vedanta has cited India’s weaker demand for nickel sulphate as a reason behind its push.
Metals-to-oil conglomerate Vedanta has urged the government to press Japan and South Korea to change their trade pacts to eliminate their import duties on nickel sulphate used in EV batteries, a source aware of the matter said.
Vedanta and some smaller firms turn nickel ores imported primarily from Australia, Indonesia and Turkey into nickel sulphate before shipping it to South Korea, Japan and other countries.
The company, part of London-headquartered Vedanta Resources and led by billionaire Anil Agarwal – has petitioned India’s government to amend the “rules of origin clause” in New Delhi’s Comprehensive Economic Partnership Agreements (CEPAs) with Japan and South Korea. Nickel sulphate shipments to Japan and South Korea attract 3.9 per cent and 5 per cent import taxes respectively; a change in the “rules of origin clause” in CEPAs would eliminate the tariffs on the shipments of the EV battery material from India, according to the source. The source declined to be identified as he was not authorised to talk to the media. India’s trade ministry and Vedanta did not immediately respond to Reuters requests for comments. India, the world’s third-biggest carbon emitter, has identified nickel as “critical” to meet the country’s ambition for cleaner technologies in sectors such as transport.
But unlike Japan and South Korea, India’s electric vehicle (EV) market is still in its nascent stage.
Vedanta has cited India’s weaker demand for nickel sulphate as a reason behind its push to sell the EV material to countries such as Japan and South Korea, where consumption of nickel sulphate is strong.
South Korea accounts for the bulk of India’s nickel sulphate exports. New Delhi sells smaller quantities of nickel sulphate to Belgium, Bangladesh, and the United Arab Emirates.
While Vedanta produces about 8,160 metric tons of nickel sulphate annually, India’s own demand is around 2,500 metric tons, according to the source.
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First Published: Sep 11 2024 | 6:53 PM IST
