Uzbekistan to raise recycling fee for electric vehicles 2.3-fold, 4-fold

TASHKENT. Feb 5 (Interfax) - The recycling fee for electric vehicles is set to increase by either 2.3-fold or by 4-fold, depending on the manufacturing date, as of May 1, 2025, as per the resolution of Uzbekistan's government, and the document has been posted in the country's national database of legislation.

The document indicates that the funds will allow additional measures to finance the infrastructure for recycling the batteries of vehicles with electric motors.

"The decree was adopted in order to expand the use of green technologies, ensure recycling the batteries of electric vehicles that have become unusable without harming the environment, and accelerate localizing the industry," according to the resolution.

The recycling fee as of May 1 will be 120 basic calculation units (BCU), or 45 million soms, around $3,462, for electric vehicles with the manufacturing date not being more than three years. The fee is currently equal to 30 BCU.

The fee will be 210 BCU, or 78.75 million soms, around $6,058, for electric vehicles with the date of manufacturing being over three years. The fee is currently 90 BCU.

Meanwhile, the benefit is retained for Uzbek manufacturers. Domestically manufactured electric vehicles are exempt from the recycling fee, and their components, devices, raw materials, and spare parts for providing services are exempt from customs duties until January 1, 2030, in accordance with the previously adopted presidential decree dated December 19, 2022.

As reported, a project to assemble hybrid and electric vehicles was launched in January 2024 in the Jizzakh region of western Uzbekistan together with China's BYD company. The first stage of the project, totaling $160 million, will produce 50,000 electric vehicles per year, the second totaling $300 million will increase production to 200,000, and the third totaling $500 million will increase production to 500,000 electric vehicles. The level of localization is expected to increase as the number of electric vehicles increases.