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India Cabinet Approves Ad Valorem Royalties for Graphite, Caesium, Rubidium and Zirconium

The decision clears the path for auctions to grow domestic supply for critical inputs used in advanced technologies.

Overview

  • New rates set at 2% of Average Sale Price for graphite with at least 80% fixed carbon and 4% for lower grades, 1% for zirconium, and 2% for caesium and rubidium.
  • Graphite royalty moves from a rupees‑per‑tonne formula in place since 2014 to an ad valorem basis to reflect wide grade‑based price differences.
  • The Cabinet says the change will enable Sixth Tranche auctions, including five graphite blocks, two rubidium blocks, and one each of caesium and zirconium.
  • Officials frame the policy as a way to reduce import dependence—India imports about 60% of its graphite needs—strengthen supply chains, and support jobs.
  • Coverage notes the move comes as China tightens exports of critical minerals, with the government highlighting the need for resilient domestic sources.