Lok Sabha Question No. 4001 (UNSTARRED), answered on 2026-03-17
Subject: Impact on EV due to Policy Changes in China pertaining to Lithium
Ministry: HEAVY INDUSTRIES
Asked by: Shri Dhairyasheel Sambhajirao Mane, Shri Sudheer Gupta, Shri Chavan Ravindra Vasantrao

## GOVERNMENT OF INDIA MINISTRY OF HEAVY INDUSTRIES

## LOK SABHA

## UNSTARRED QUESTION NO. 4001

ANSWERED ON 17.03.2026

## IMPACT ON EV DUE TO POLICY CHANGES IN CHINA PERTAINING TO LITHIUM

## 4001.  SHRI SUDHEER GUPTA: SHRI CHAVAN RAVINDRA VASANTRAO: SHRI DHAIRYASHEEL SAMBHAJIRAO MANE:

## Will the Minister of HEAVY INDUSTRIES be pleased to state:

(a) whether change in recent policy or market developments in China pertaining to lithium supply, pricing or export controls could adversely impact Indian Electric Vehicle (EV) manufacturers;

(b) if so, the details thereof;

(c) the likely impact on the cost of lithium and related raw materials for Indian EV companies;

(d) the steps/measures taken/being taken by the Government to secure alternative sources of lithium and other critical minerals to protect EV industry in the country;

(e) whether the Government is also considering/planning to introduce any policy support, incentives or safeguards to protect the domestic EV industry from global supply chain disruptions;

(f) if so, the details thereof; and

(g) the details regarding other measures taken/being taken by the Government to reduce dependency on imported lithium to support Indian EV industry?

## ANSWER

## THE MINISTER OF STATE FOR HEAVY INDUSTRIES (SHRI BHUPATHIRAJU SRINIVASA VARMA)

(a) & (b): As per information received from Society of Indian Automobile Manufacturers(SIAM), India currently has a high import dependence on critical minerals such as lithium, which are essential for lithium-ion batteries used in electric vehicles (EVs).  The entire current demand is met through imports, making the sector sensitive to external shocks.  Recent policy developments in China, specifically the decision to impose export controls and licensing requirements  on  high-performance  Lithium-ion  batteries  (≥300  Wh/kg),  cathode  materials, artificial-graphite  anodes,  and  associated  manufacturing  technology,  could  tighten  near-term global  supply  conditions.  This  creates  potential  supply-chain  vulnerability  for  Indian  EV manufacturers who rely on Chinese midstream processing

(c): Lithium and other battery raw materials are globally traded commodities, and their prices are influenced  by  international  demand-supply  conditions.    Any  global  policy  changes  or  supply disruptions  may  lead  to  price  fluctuations  in  lithium,  cobalt,  and  nickel.    The  export  controls announced by China have the potential to elevate global component prices in the near term, directly influencing the cost structure for Indian EV companies. However, the overall impact on battery prices is also influenced by technology improvements, economies of scale, and the localization of manufacturing.

(d) & (g): The Government has taken various steps to reduce import dependence for critical minerals.  The Union Cabinet has approved the National Critical Mineral Mission (NCMM) on 29 th January, 2025 to secure a long-term sustainable supply of critical minerals (including lithium) and  strengthen  India's  critical  mineral  value  chain  encompassing  all  stages  from  mineral exploration and mining to beneficiation, processing, and recovery from end-of life products.   Additionally,  the  following  initiatives  have,  inter-alia,  been  taken  to  strengthen  the critical mineral sector in the country:-

- i. The  Union  Cabinet  approved  the  National  Critical  Mineral  Mission  (NCMM)  on 29.01.2025  with  the  objectives  of  securing  India's  critical  mineral  supply  chain  and strengthening the critical mineral value chains.
- ii. Since the amendment to the MMDR Act in 2023, Central Government has successfully auctioned 46 blocks of Critical and Strategic Minerals. In addition, 7 blocks have been auctioned under the Exploration Licence regime, out of which 3 are critical mineral blocks.
- iii. The Union Cabinet has approved a Rs.1,500 crore Incentive Scheme to promote critical mineral recycling. The Scheme Guidelines were issued, and the Scheme was launched on 02.10.2025.
- iv. Guidelines for funding pilot projects for the recovery of critical minerals from overburden/ tailings/ fly ash/ red mud, etc. were issued on 14.11.2025.
- v. The Government has recognized nine premier institutes as Centres of Excellence (CoEs) under the NCMM to carry out Research & Development (R&D) for strengthening domestic capabilities in the critical mineral value chain.
- vi. Khanij Bidesh India Limited (KABIL), under Ministry of Mines, has signed an Exploration and  Development  Agreement  with  CAMYEN,  a  state-owned  enterprise  of  Catamarca province  of  Argentina,  for  exploration  and  mining  of  five  Lithium  Brine  Blocks  in Argentina covering an area of 15703 Ha.
7. (e) & (f): No such policy is under consideration in the Ministry of Heavy Industries(MHI).

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