The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved new and revised royalty rates for four critical minerals—caesium, graphite, rubidium and zirconium—aimed at accelerating mineral auctions, boosting domestic output and reducing import dependence. The revised royalty structure is as follows:

• Caesium: 2 per cent of Average Sale Price (ASP), chargeable on caesium metal contained in the ore • Graphite: — With 80 per cent or more fixed carbon: 2 per cent of ASP (ad valorem) — With less than 80 per cent fixed carbon: 4 per cent of ASP (ad valorem) • Rubidium: 2 per cent of ASP, chargeable on rubidium metal contained in the ore • Zirconium: 1 per cent of ASP, chargeable on zirconium metal contained in the ore

The Cabinet stated that the decision will help unlock mineral blocks containing caesium, rubidium and zirconium—minerals often found alongside other critical resources such as lithium, tungsten, rare-earth elements and niobium. Switching graphite to an ad valorem royalty structure will ensure royalties reflect market prices across varying grades.

Increasing domestic production is expected to reduce import dependence, strengthen supply-chain security and generate employment.

Graphite, caesium, rubidium and zirconium are essential for high-technology applications and India’s clean-energy transition. Graphite and zirconium are also listed among the 24 critical and strategic minerals identified under the Mines and Minerals (Development and Regulation) Act, 1957.

Graphite is a vital component of electric-vehicle batteries, yet India currently imports around 60 per cent of its requirement. Nine graphite mines are operational, with 27 blocks auctioned and 20 further blocks handed over by GSI and MECL for upcoming auctions. Another 26 blocks remain under exploration.

Zirconium is widely used across nuclear energy, aerospace, healthcare and advanced manufacturing due to its corrosion resistance and heat stability. Caesium plays a key role in ultra-precise electronic applications such as atomic clocks, GPS systems and medical instruments, while rubidium is used in speciality glass, fibre optics, telecommunications and night-vision systems.

On 16 September 2025, the Centre issued a Notice Inviting Tender for the sixth tranche of critical mineral block auctions. This includes five graphite blocks, two rubidium blocks and one each for caesium and zirconium. The newly approved royalty rates will help bidders prepare rational financial bids.

Graphite has been the only critical mineral with a fixed per-tonne royalty since September 2014. With significant grade-wise price variation, the government has now aligned graphite royalties with ad valorem norms, consistent with the recently established 2–4 per cent royalty range for most critical minerals.