Vedanta, the metals-to-oil conglomerate, is urging the Indian government to advocate for Japan and South Korea to remove their import duties on nickel sulphate, a crucial component for electric vehicle (EV) batteries.
The company, part of London-based Vedanta Resources and led by billionaire Anil Agarwal, is seeking changes to the “rules of origin clause” in India’s Comprehensive Economic Partnership Agreements (CEPAs) with these countries. Currently, nickel sulphate shipments face a 3.9% import tax in Japan and a 5% tax in South Korea.
Vedanta, along with smaller firms, processes nickel ores from Australia, Indonesia, and Turkey into nickel sulphate before exporting it to South Korea, Japan, and other markets. The company argues that modifying these trade rules would eliminate tariffs on its EV battery materials and boost exports to countries with higher demand.
India’s trade ministry and Vedanta have not yet responded to requests for comment. As India, the world’s third-largest carbon emitter, aims to develop cleaner technologies, nickel is deemed essential. However, India’s EV market remains in its early stages compared to Japan and South Korea, where demand for nickel sulphate is strong.
Vedanta’s production of nickel sulphate stands at approximately 8,160 metric tons annually, while domestic demand in India is around 2,500 metric tons. The company is pushing to increase exports to markets with greater consumption, such as South Korea, which is the primary destination for India’s nickel sulphate exports.
