Union Cabinet Rationalises Royalty Rates for Minerals Critical for Green Energy
The Union Cabinet has approved new royalty rates for graphite, caesium, rubidium, and zirconium —key minerals for green energy, electric vehicle (EV) batteries and high-tech applications – to boost domestic production and facilitate the auction of critical mineral blocks.
November 13, 2025. By Mrinmoy Dey
Graphite, Caesium, Rubidium and Zirconium are important minerals for high-tech applications and energy transition. Graphite and Zirconium are also among the 24 critical and strategic minerals listed in the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act).
Now, Caesium will attract a royalty of two percent of the Average Sale Price (ASP) of caesium metal, chargeable on the caesium metal contained in the ore produced.
For graphite, the royalty rate will be two percent of ASP on an ad valorem basis for material with 80 percent or more fixed carbon, and four percent of ASP on an ad valorem basis for graphite with less than 80 percent fixed carbon.
Rubidium will carry a royalty of two percent of the ASP of rubidium metal, chargeable on the rubidium metal contained in the ore produced. Zirconium will have a royalty rate of one percent of the ASP of zirconium metal, chargeable on the zirconium metal contained in the ore produced.
The decision is aimed at promoting auction of mineral blocks containing caesium, rubidium and zirconium thereby not only unlocking these minerals but also associated critical minerals found with them, such as lithium, tungsten, REES, niobium etc., noted a statement by the Ministry of Mines.
It further added that fixing of royalty rates of Graphite on ad valorem basis will proportionately reflect the change in prices of the mineral across grades. Increase in indigenous production of these minerals would lead to reduction in imports and supply chain vulnerabilities and also generate employment opportunities in the country.
For the uninitiated, graphite is a crucial component in electric vehicle (EV) batteries, primarily serving as the anode material, which enables high conductivity and charge capacity. However, India imports 60 percent of its requirement of graphite. At present, nine graphite mines are working in the country and further 27 blocks have been successfully auctioned. Further, GSI and MECL have handed over 20 graphite blocks which will be auctioned and around 26 blocks are under exploration.
Zirconium is a versatile metal used in various industries, including nuclear energy, aerospace, healthcare and manufacturing, due to exceptional corrosion resistance and high temperature stability. Caesium is mainly used in high-tech electronics sector, particularly in atomic clocks, GPS systems, other high precision instruments, medical instruments including in cancer therapy, etc. Rubidium is used in making specialty glasses used in fibre optics, telecommunication systems, night vision devices etc.
Recently, the Central Government has issued NIT for the Sixth Tranche of auction for critical mineral blocks. This also contains 5 blocks of Graphite, 2 blocks of Rubidium and 1 block each of Caesium and Zirconium. This approval of the Union Cabinet on rate of royalty will help the bidders to rationally submit their financial bids in auction, stated the Ministry.
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