Exide Industries, Amara Raja Energy, other battery stocks shine as FM exempts scrap of lithium-ion battery exempt from BCD in Budget 2025

Amara Raja Energy, HBL Power Systems, Exide Industries, and other battery stocks jumped in trade.

Exide Industries, Amara Raja Energy, HBL Power Systems and other stocks of firms that operate in the batteries and power storage systems jumped as the Finance Minister Nirmala Sitharaman announced measures to boost the sector in the Union Budget 2025.

The Finance Minister said, "Cobalt powder and waste, scrap of lithium-ion battery, lead, zinc and 12 more critical minerals to be exempted from Basic Customs Duty (BCD)."

Further, she added that 35 additional goods for EV battery manufacturing, and 28 additional goods for mobile phone battery manufacturing will be added to list of exempted capital goods.

Shares of Exide Industries, Amara Raja Energy, HBL Power Systems gained up to four percent in trade.

Exide Industries was quoting Rs 382.25, while Amara Raja Energy was hovering around Rs 1,075.55, higher by four percent on the NSE, compared to the previous session's closing prices.

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Battery manufacturers rely on recycled lithium, cobalt, and nickel from used batteries. Removing the import duty on battery scrap reduces production costs, making manufacturing more economical.

A stable supply of lithium-ion scrap helps mitigate risks associated with fluctuating raw material prices and geopolitical uncertainties in lithium and cobalt supply chains.

Also, the exemption encourages firms to use recycled materials instead of relying solely on newly mined resources, promoting sustainability and reducing dependence on expensive imports.

With lower input costs, battery firms can improve their profit margins or offer more competitive pricing in the growing electric vehicle and energy storage markets. Cheaper access to recycled materials can support India's push for local battery manufacturing, reducing reliance on imports of finished battery cells.

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