The Centre on Wednesday said it has approved royalty rates of 3 per cent each for lithium and niobium and 1 per cent for Rare Earth Elements (REEs).

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The decision on the royalty rates for the three critical and strategic minerals was taken by the Union Cabinet chaired by Prime Minister Narendra Modi, according to an official statement.

The royalty rate approval by the Cabinet will enable the Centre to auction lithium, niobium and REEs blocks for the first time in the country, it said.

"The Union Cabinet... Approved amendment of Second Schedule of the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act) for specifying rate of royalty in respect of 3 critical and strategic minerals, namely, lithium, niobium and Rare Earth Elements," the Ministry of Mines said in a statement.