The Government of India on November 12, 2025, approved rationalization of royalty rates of Graphite, Caesium, Rubidium and Zirconium minerals critical for Green Energy.
The decision was taken by the Union Cabinet chaired by the Prime Minister, Shri Narendra Modi, to specify/revise the royalty rate of caesium, Graphite, Rubidium and Zirconium as below:
Royalty rates of the minerals are as stated:
• Caesium - 2% of Average Sale Price (ASP) of Caesium metal chargeable on the Caesium metal contained in the ore produced.
• Rubidium - 2% of ASP of Rubidium metal chargeable on the Rubidium metal contained in the ore produced.
• Zirconium - 1% of ASP of Zirconium metal chargeable on the Zirconium metal contained in the ore produced.
The Union Cabinet’s decision will facilitate the auction of mineral blocks containing Caesium, Rubidium and Zirconium, enabling the exploration of these and associated critical minerals such as Lithium, Tungsten, REEs and Niobium. Switching Graphite royalty to an ad valorem basis will better reflect price variations across grades. Increased domestic production is expected to reduce import dependency, strengthen supply chains and create employment.
Graphite, Caesium, Rubidium and Zirconium are vital for high-tech industries and energy transition. India currently imports 60% of its Graphite needs; 9 mines are operational, 27 blocks have been auctioned, and more blocks are ready for or under exploration. Zirconium is used in nuclear, aerospace and medical sectors; Caesium in atomic clocks, GPS and precision instruments; Rubidium in specialty glass, telecom and night-vision devices.
The Government released the Sixth Tranche NIT on 16 September 2025, including blocks of Graphite, Rubidium, Caesium and Zirconium. The newly approved royalty rates will help bidders make rational financial bids. Graphite royalty—formerly per-tonne since 2014—is now aligned with other critical minerals at ad valorem rates, typically ranging from 2% to 4%.
[Release ID: 2189392]
