India Bans Export of Lithium-Ion Battery Black Mass
In a significant move to bolster domestic recycling, the Directorate General of Foreign Trade (DGFT) has prohibited the export of Lithium-Ion Battery Black Mass, effective immediately. This decision, formalized through Notification No. 49/2026-27 on November 10, 2026, shifts the export policy of this critical resource from ‘Free’ to ‘Prohibited.’ The change aims to enhance the availability of raw materials essential for the country’s growing battery recycling industry.
The Lithium-Ion Battery Black Mass, classified under ITC(HS) Code 85491400, includes waste and scrap from primary cells, batteries, and accumulators. This powdery material, derived from shredding end-of-life lithium-ion batteries, contains valuable minerals such as lithium, cobalt, nickel, and manganese, which are vital for electric mobility and renewable energy technologies. Currently, India relies heavily on imports for these critical minerals, making it crucial to develop domestic sources.
By keeping Black Mass within Indian borders, the government aims to enhance recycling capabilities and ensure that the country’s growing recycling plants have access to adequate feedstock. This prohibition prevents the export of a resource that is currently being diverted overseas, thereby allowing local recyclers to meet their needs without the need to import similar materials.
Furthermore, this measure is designed to increase domestic recovery of essential minerals, thereby reducing India’s import dependence and conserving foreign currency reserves. By reinforcing local supply chains for battery manufacturing and clean energy technologies, the initiative aligns with the Aatmanirbhar Bharat vision, promoting self-sufficiency and sustainability.
The decision also advances the objectives of the National Critical Mineral Mission (NCMM), particularly its ₹1,500 crore Incentive Scheme introduced by the Union Cabinet in September 2025. This scheme aims to enhance recycling capacity for extracting critical minerals from electric waste and battery waste. Retaining Black Mass for domestic processing ensures that these initiatives have sufficient resources to develop efficient recycling operations.
This move is consistent with global trends, as many major economies have implemented similar measures to retain critical mineral-bearing battery waste for domestic processing. By advancing towards a circular economy and encouraging urban mining, India is taking important steps to reduce reliance on primary mining operations and support environmentally compliant recycling processes.
The full notification is accessible on the DGFT website.
