India Bans Lithium-Ion Battery Black Mass Exports
The Government of India prohibited the export of lithium-ion battery black mass to secure critical minerals and boost domestic recycling capacity.
The Directorate General of Foreign Trade has prohibited the export of lithium-ion battery black mass and other unsorted battery waste and scrap, effective immediately. The ban targets materials under ITC (HS) Code 85491400 that do not contain lead, cadmium, or mercury. By restricting the export of black mass—the powder produced from shredded batteries—the government aims to ensure domestic refiners have the feedstock necessary to recover lithium, nickel, cobalt, manganese, and graphite.
This policy shift from 'Free' to 'Prohibited' is designed to reduce India's import dependence for the electric vehicle and energy storage sectors. To support this transition, the Union Cabinet, chaired by Prime Minister Narendra Modi, approved a 2,814 crore rupee capital expenditure support scheme for fiscal years 2026-27 through 2030-31. This initiative provides a 30% capital subsidy to establish four major processing units, with two dedicated to lithium and two to nickel, offering up to 900 crore rupees per nickel project.
Additionally, the government approved a 1,500 crore rupee scheme under the National Critical Mineral Mission to further build recycling capacity for electronic waste and spent batteries. While the Material Recycling Association of India welcomed the move to conserve critical mineral resources, the Global Trade Research Initiative noted that enforcement will depend on the ability of Customs to identify materials that may be declared under different tariff codes to evade the ban.
