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Published By : Satya Mohapatra | November 14, 2025 2:36 PM
rt-pcr-test-mandatory-for-passengers-at-bhubaneswar-railway-station

Government aims to reduce import reliance for key high-tech minerals

The Union Cabinet has approved new royalty rates for four vital minerals. These include graphite, caesium, rubidium, and zirconium. This decision is a strategic move to boost domestic production. It will also help secure India's supply chain for its green energy and high-tech sectors.

This policy update is designed to lessen India's dependence on foreign imports. It will also help protect against global supply disruptions. This is especially important given China's current dominance in the critical minerals market.

A major change involves the royalty calculation for graphite. The government is shifting from a fixed per-tonne rate to an ad valorem (ASP) basis. This means the royalty will now be a percentage of the mineral's average sale price. This new method allows the rate to fluctuate fairly with market prices.

Under the new structure, graphite with a high fixed carbon content (80% or more) will attract a 2% royalty. Graphite with less than 80% fixed carbon will have a 4% royalty rate.

For the other minerals, the Cabinet specified clear percentage-based rates. Both caesium and rubidium will have a 2% royalty rate. This will be based on the average sale price (ASP) of the metal contained within the ore. Zirconium will be set at a 1% royalty rate of its ASP.

These four minerals are essential for India's modern economy. Graphite is a fundamental component for manufacturing EV batteries. Zirconium is crucial for the nuclear energy industry due to its high resistance to corrosion. Caesium is vital for high-tech electronics, including GPS systems and atomic clocks. Rubidium is used in specialty glass for fibre optics and night-vision devices.

The government stated that these new royalty rates for critical minerals will incentivize the auction of new mineral blocks. This push is expected to unlock these four minerals. It should also unlock associated critical minerals found with them, like lithium, tungsten, and other rare earth elements (REEs). This will further bolster India's self-reliance.