Budget 2025 cuts customs duties, boosting Exide and Amara Raja stocks

Saturday, February 1, 2025, turned out to be a great day for battery stocks because of the Union Budget 2025. Finance Minister Nirmala Sitharaman announced a big win for the sector—custom duty exemptions on key battery raw materials. This move is set to give domestic manufacturers like Exide Industries and Amara Raja Batteries a solid advantage.

As part of the budget, essential battery materials such as cobalt powder, waste and scrap of lithium-ion batteries, lead, zinc, and 12 other critical minerals will now be exempt from basic customs duty (BCD). The government also added 35 more capital goods for EV battery production and 28 for mobile phone battery manufacturing to the exemption list.

Why this matters for the battery industry

Lower import costs on crucial battery materials mean manufacturers can now produce batteries at a more competitive price. Companies that rely on recycled lithium, cobalt, and nickel will find it easier to manage costs, which could lead to better profit margins and more affordable products for consumers.

This exemption also supports sustainability by encouraging the use of recycled materials over newly mined resources. A steady supply of lithium-ion scrap will help businesses navigate raw material price fluctuations and geopolitical uncertainties, making India’s battery industry more self-reliant.

What this means for investors

The buzz around battery stocks is just the beginning. With India’s strong push for local EV battery production, domestic companies are in a great position to scale up. The combination of lower production costs and government support makes this a promising sector for share market investment. 

On February 1, 2025, at 1:03 PM, Amara Raja Battery stocks shot up by 5.6%, reaching ₹1,093.6 per share, while Exide Industries saw a 3.8% jump to ₹388.9 per share. Other battery-related stocks also saw gains, reflecting the positive sentiment across the industry. The latest policy changes have created a fresh buzz around share market investment in this space.