DGFT Prohibits Export Of Lithium-Ion Battery Black Mass

The Directorate General of Foreign Trade (DGFT) has prohibited the export of lithium-ion battery black mass with immediate effect, aiming to increase domestic availability of critical minerals and support India's battery recycling industry.

The Department of Commerce has amended the export policy for lithium-ion battery black mass under ITC(HS) Code 85491400 from 'Free' to 'Prohibited'. The restriction will remain in force until further orders, with transitional arrangements under Para 1.05 of the Foreign Trade Policy (FTP), 2023, applicable.

Black mass is the powdery material obtained from shredding end-of-life lithium-ion batteries and battery manufacturing waste. It contains recoverable quantities of critical minerals, including lithium, cobalt, nickel and manganese. The relevant ITC(HS) code covers waste and scrap of primary cells, batteries and electric accumulators, including spent units that are unsorted and do not contain lead, cadmium or mercury.

DGFT Export Ban Targets Domestic Battery Recycling Capacity

India relies substantially on imports for several critical minerals used in electric mobility, advanced chemistry cell batteries, energy storage, electronics and renewable energy. Battery recycling is considered an avenue for developing domestic supplies of these materials.

According to the Ministry of Commerce and Industry, India's battery waste recycling and critical mineral refining capacity has expanded but remains underutilised due to inadequate feedstock availability. While black mass generated domestically has been exported, some domestic recyclers have had to import material to meet their processing requirements.

The export prohibition is intended to retain domestically generated black mass for processing within India. The government expects the measure to improve feedstock availability for recycling and refining facilities, increase capacity utilisation and encourage further investment in the sector.

It is also expected to increase domestic recovery of lithium, cobalt, nickel and other critical minerals, reducing dependence on imports and associated foreign exchange expenditure. The policy is intended to support supply chains serving battery manufacturing, electric vehicles, energy storage and clean-energy technologies.

₹1,500 Crore Critical Mineral Recycling Scheme

The export restriction complements the government's National Critical Mineral Mission (NCMM), including its ₹1,500 crore Incentive Scheme for Critical Mineral Recycling.

Approved by the Union Cabinet in September 2025, the scheme aims to develop recycling capacity for the separation and production of critical minerals from secondary sources, including battery waste and electronic waste.

Retaining black mass within the country is expected to provide domestic recycling facilities with access to feedstock as capacity is developed under the incentive scheme.

The government has also linked the measure to its broader circular economy and urban mining objectives, which involve recovering minerals from discarded products and reducing reliance on primary mining. Domestic processing is also intended to support environmentally compliant recycling of battery waste.

The notification follows similar measures adopted by several major economies to retain critical mineral-bearing battery waste and black mass for domestic processing.