By New Delhi — Vedanta, a major metals-to-oil conglomerate, is urging the Indian government to negotiate with Japan and South Korea to remove import duties on nickel sulphate used in electric vehicle (EV) batteries. This push aims to make Indian nickel sulphate more competitive in these markets.
Vedanta, which processes nickel ores from Australia, Indonesia, and Turkey into nickel sulphate, seeks to benefit from changes in the “rules of origin clause” in India’s Comprehensive Economic Partnership Agreements (CEPAs) with Japan and South Korea. Currently, nickel sulphate shipments face import taxes of 3.9% in Japan and 5% in South Korea.
The company, led by billionaire Anil Agarwal, argues that removing these tariffs would boost its ability to export nickel sulphate, given India’s relatively small domestic demand compared to international markets. India’s electric vehicle market is still emerging, while Japan and South Korea have a strong demand for nickel sulphate.
Vedanta’s production capacity stands at approximately 8,160 metric tons of nickel sulphate annually, but domestic consumption in India is around 2,500 metric tons. Consequently, Vedanta aims to redirect excess production to markets where the demand is higher, such as South Korea, Japan, Belgium, Bangladesh, and the United Arab Emirates.
India’s trade ministry and Vedanta have yet to comment on the ongoing negotiations.
