The Directorate General of Foreign Trade (DGFT) has prohibited the export of lithium-ion battery black mass to increase the domestic availability of critical minerals and strengthen India’s battery recycling industry.
The restriction, announced through Notification No. 49/2026-27 dated November 10, 2026, changes the export classification of lithium-ion battery black mass under ITC(HS) Code 85491400 from ‘Free’ to ‘Prohibited’.
The ban takes effect immediately and will remain in force until further orders. Transitional arrangements under Paragraph 1.05 of the Foreign Trade Policy (FTP), 2023, will continue to apply.
The government said the decision aims to reduce dependence on imported critical minerals, improve the utilisation of domestic recycling facilities, and support the country’s growing electric vehicle and energy storage industries.
What Is Lithium-Ion Battery Black Mass?
Black mass is a powder-like material produced by shredding used lithium-ion batteries and waste generated during battery manufacturing.
It contains recoverable quantities of valuable minerals, including lithium, cobalt, nickel, and manganese. These materials are essential for manufacturing electric vehicle batteries, energy storage systems, electronic devices, and renewable energy technologies.
The relevant ITC(HS) classification covers certain waste and scrap from batteries and accumulators, including unsorted material that does not contain lead, cadmium, or mercury. The DGFT notification specifically identifies lithium-ion battery black mass as the prohibited export item.
Recovering critical minerals from discarded batteries provides an alternative to extracting them through conventional mining operations.
Export Ban Aims to Address Raw Material Shortages for Indian Recyclers
According to the government, India’s battery recycling and critical mineral refining capabilities have expanded considerably in recent years. However, some domestic facilities remain underutilised because of insufficient availability of recyclable battery material.
Exports of black mass generated within India have contributed to this shortage, with some domestic recycling companies having to import battery waste to meet their processing requirements.
By restricting exports, the government intends to retain domestically generated black mass for processing and mineral recovery within the country.
The measure is expected to improve the availability of raw materials for recycling and refining facilities, increase capacity utilisation, and encourage additional investment and employment in the sector.
Higher domestic recovery of lithium, cobalt, nickel, and other minerals could also reduce India’s reliance on imports and the associated expenditure of foreign exchange.
Ban to Support ₹1,500 Crore Critical Mineral Recycling Scheme
The export restriction complements the government’s National Critical Mineral Mission (NCMM), which aims to strengthen domestic supply chains for minerals essential to emerging technologies.
In September 2025, the Union Cabinet approved a ₹1,500 crore incentive scheme to develop recycling capacity for recovering critical minerals from secondary sources, including battery waste and electronic waste.
The scheme focuses on expanding facilities capable of separating and producing critical minerals from recyclable materials.
Retaining black mass within India is expected to ensure that recycling facilities developed under the scheme have access to sufficient domestic feedstock.
The government also expects the policy to support battery manufacturing, electric mobility, energy storage, and clean-energy technologies under the Aatmanirbhar Bharat initiative.
Government Seeks to Promote Circular Economy and Urban Mining
Beyond strengthening mineral supply chains, the restriction is intended to encourage the development of a circular economy through the recovery and reuse of valuable materials.
The government highlighted the role of ‘urban mining’, which involves extracting useful resources from discarded products and waste rather than relying exclusively on newly mined materials.
Greater recovery of minerals from used batteries could reduce the need for primary mining while supporting more sustainable resource management.
The government also emphasised that recycling and processing of battery waste must comply with applicable environmental regulations, given the hazardous nature of the material.
According to the DGFT, the restriction is consistent with measures introduced by several major economies to retain critical mineral-bearing battery waste for domestic processing.
Read More :