Budget 2025-26 exempted 35 capital goods for EV battery and 28 for mobile phone battery manufacturing. BCD on cobalt, lithium-ion scrap, and 12+ critical minerals fully exempted. Budget 2026-27 extended exemptions to BESS capital goods.
Phased duty rationalisation across the EV value chain complementing PLI for ACC. Lowers cost of domestic battery production and reduces import dependence on processed materials.