India has prohibited the export of lithium-ion battery black mass, a mineral-rich material recovered from used batteries and battery manufacturing waste, as the government looks to strengthen domestic recycling and reduce dependence on imported critical minerals. The Directorate General of Foreign Trade (DGFT), under the Ministry of Commerce and Industry, changed the export classification of the specified material from ‘Free’ to ‘Prohibited’ with immediate effect through Notification No. 49/2026-27, issued on November 10, 2026.
The decision is intended to ensure that valuable materials such as lithium, cobalt, nickel and manganese remain available to Indian recyclers and refiners instead of being shipped overseas. It comes as India expands its electric vehicle, battery manufacturing and energy storage industries, all of which require reliable supplies of critical minerals. The restriction also complements the government’s ₹1,500 crore incentive scheme for critical mineral recycling, approved in September 2025.
India Changes Export Policy for Lithium-Ion Battery Black Mass
Under the new notification, the export policy for lithium-ion battery black mass classified under ITC (HS) Code 85491400 has been changed from ‘Free’ to ‘Prohibited’.
The restriction applies to specified unsorted waste and scrap of primary cells, batteries and electric accumulators, including spent batteries that do not contain lead, cadmium or mercury.
The prohibition has taken effect immediately and will remain in force until further orders. Transitional arrangements under Para 1.05 of the Foreign Trade Policy 2023 will apply.
The notification is significant because the material contains valuable minerals that can be recovered and reused in manufacturing new batteries.
The government wants Indian recycling companies to process this material domestically, recover the minerals and supply them to industries that currently depend substantially on imported resources.
Importantly, the notification covers the specified category of lithium-ion battery black mass and related waste. It should not be interpreted as a blanket ban on exports of every type of battery, battery component or processed mineral product.
What Is Lithium-Ion Battery Black Mass?
Black mass is a powder-like material produced when used lithium-ion batteries and battery manufacturing scrap are dismantled, shredded and processed.
During recycling, batteries are broken down and separated into different components, including metal casings, plastics and other materials. The remaining mineral-rich powder is known as black mass.
It contains recoverable quantities of several materials used in battery manufacturing.
| Critical mineral | Importance |
|---|---|
| Lithium | Essential component in lithium-ion battery chemistries |
| Cobalt | Used in certain battery cathode chemistries |
| Nickel | Helps improve energy density in several battery types |
| Manganese | Used in multiple battery cathode formulations |
| Graphite | Commonly used in battery anodes |
The exact composition depends on the battery chemistry and the type of waste being processed.
Black mass is not a finished battery material. It must undergo further chemical and refining processes to extract individual minerals and convert them into usable compounds.
Two important approaches include hydrometallurgical processing, which uses chemical solutions to recover metals, and other specialised refining techniques designed to separate valuable materials.
Once recovered and refined to the required quality, these materials can re-enter industrial supply chains.
Why Has India Banned Black Mass Exports?
The government’s decision addresses a gap in India’s battery recycling ecosystem.
Domestic companies have developed facilities to collect, dismantle and shred used batteries. However, the capacity to extract and refine valuable minerals from black mass has not expanded at the same pace.
As a result, some mineral-rich material was being exported for processing overseas, while Indian recyclers and refiners faced shortages of feedstock.
The Commerce Ministry said domestic recycling capacity was not being fully utilised because of inadequate availability of material. It also noted that some Indian recyclers had to import black mass to meet their processing requirements.
The export prohibition aims to address this mismatch by keeping domestically generated black mass within India.
1. Securing critical mineral supplies
India depends substantially on imports for several critical minerals used in electric vehicles, electronics, renewable energy and battery storage.
Retaining black mass could create an additional domestic source of these materials.
Recycling can help recover minerals from products already manufactured and used, reducing the need to depend entirely on newly mined resources or imported processed materials.
2. Improving utilisation of domestic recycling facilities
Recycling plants require a consistent supply of battery waste to operate efficiently.
If Indian facilities cannot obtain sufficient feedstock, their processing capacity may remain underutilised even when investment has already been made.
The export restriction is intended to improve material availability and encourage companies to expand their domestic recovery operations.
3. Reducing foreign exchange outflows
India’s dependence on imported minerals and processed battery materials exposes manufacturers to international price fluctuations and supply-chain disruptions.
Recovering more lithium, cobalt, nickel and other materials domestically could reduce some of this import dependence and the associated foreign exchange expenditure.
4. Supporting employment and investment
A stronger recycling ecosystem could encourage investment in battery collection, dismantling, shredding, chemical processing and refining.
These activities can create opportunities across industrial manufacturing, engineering, waste management and specialised chemical processing.
India Has 57 Registered Lithium-Ion Battery Recyclers
India has been expanding its battery recycling infrastructure as electric vehicle adoption and battery manufacturing requirements increase.
According to figures reported by The Indian Express, 57 lithium-ion battery recyclers were registered on the Central Pollution Control Board’s Battery Waste Extended Producer Responsibility portal.
Their combined annual processing capacity stood at approximately 5.17 lakh metric tonnes.
However, the estimated input capacity specifically for processing lithium-ion battery black mass was around 75,500 metric tonnes annually.
These figures highlight the distinction between overall battery recycling capacity and the specialised capacity required to recover minerals from black mass.
Building shredding facilities alone is not sufficient to create a complete domestic recycling industry. Companies also need advanced refining technologies, skilled workers, reliable waste collection networks and access to buyers for recovered materials.
The export ban could encourage investment in these downstream capabilities.
₹1,500 Crore Incentive Scheme to Support Critical Mineral Recycling
The latest restriction complements the government’s ₹1,500 crore Incentive Scheme for Promotion of Critical Mineral Recycling, approved by the Union Cabinet in September 2025.
The scheme is designed to encourage the recovery of critical minerals from secondary sources, including:
- Spent lithium-ion batteries.
- Electronic waste.
- Industrial scrap.
- Other mineral-bearing waste materials.
The programme aims to support investment in facilities that can separate and produce critical minerals from these sources.
It forms part of the broader National Critical Mineral Mission, approved in January 2025 with a government expenditure outlay of ₹16,300 crore.
The mission seeks to strengthen India’s critical mineral supply chain through exploration, overseas asset acquisition, processing, recycling and related industrial development.
The government has also taken steps to support domestic recycling through customs duty measures, including the removal of basic customs duty on specified lithium-ion battery scrap imports in the Union Budget for 2025-26.
Together, these policies are intended to develop a more integrated domestic ecosystem for critical minerals.
How the Ban Could Benefit India’s EV and Battery Manufacturing Industry
India’s electric vehicle industry is expanding, increasing the need for lithium-ion batteries and the minerals required to manufacture them.
Battery storage is also becoming increasingly important as the country adds renewable energy capacity. Solar and wind power generation can fluctuate depending on weather and time of day, creating demand for storage systems that can balance electricity supply.
A domestic recycling ecosystem could help support these industries in several ways.
Lower exposure to overseas supply chains: Recovered minerals could provide an additional source of raw materials for Indian battery manufacturers.
Better material security: Domestic processing could reduce the industry’s vulnerability to disruptions in international mineral markets.
Circular economy development: Used batteries could become a source of valuable industrial materials rather than simply being treated as waste.
More domestic value addition: Processing black mass within India could allow companies to capture more of the value generated from battery recycling.
However, the benefits will depend on whether Indian companies can recover minerals efficiently and produce materials that meet the quality requirements of battery manufacturers.
Enforcement and Processing Capacity Remain Key Challenges
Although the export ban could improve feedstock availability, its effectiveness will depend on implementation.
One challenge is ensuring that exporters do not misclassify black mass under different product descriptions or customs codes.
Industry experts have raised concerns that mineral-rich battery waste could potentially be declared as cobalt powder, nickel intermediates or other industrial materials to avoid scrutiny.
Customs authorities will therefore need to examine the origin, composition and processing history of exported materials, rather than relying only on their declared names.
Another challenge is the technical complexity of recovering battery-grade materials.
Black mass can contain different mineral combinations, chemical residues and contaminants depending on the battery type and recycling process. Extracting high-purity materials requires specialised equipment, technical expertise and compliance with environmental regulations.
The government will also need to ensure that domestic recycling facilities handle hazardous waste safely and operate under applicable pollution-control requirements.
The Bigger Picture
India’s decision to prohibit black mass exports represents a shift from simply encouraging battery recycling investment to securing the raw material needed to make those investments productive. By retaining mineral-rich battery waste within the country, the government wants to create a stronger link between used batteries, domestic refiners and future battery manufacturing.
The policy also reflects the growing strategic importance of critical minerals. As electric vehicles, renewable energy storage and electronics expand, access to lithium, cobalt, nickel and other materials will become increasingly important for industrial competitiveness. Recycling can provide an additional domestic source, although it cannot replace the need for mining, imports and investment in processing technology.
Looking Ahead
The immediate priority will be ensuring that the export restriction is implemented effectively and that domestic recyclers receive a reliable supply of black mass. The government will also need to encourage investment in advanced refining facilities capable of recovering minerals at the quality and scale required by battery manufacturers. The success of the ₹1,500 crore incentive scheme will be an important factor in determining how quickly these capabilities develop.
Over the longer term, India’s ability to build a complete battery recycling ecosystem could strengthen its electric vehicle and energy storage supply chains. The export ban provides domestic companies with greater access to a valuable secondary resource, but the real economic benefits will depend on efficient collection, safe processing, high recovery rates and the ability to convert recovered minerals into commercially usable materials.
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