India Prohibits Export of Lithium-Ion Battery Black Mass

The Directorate General of Foreign Trade has prohibited exports of lithium-ion battery Black Mass to secure domestic feedstock for critical mineral recovery and strengthen battery recycling and refining capacity.

November 12, 2026. By Mrinmoy Dey

The Directorate General of Foreign Trade (DGFT), Department of Commerce, has prohibited the export of lithium-ion battery Black Mass under ITC(HS) Code 85491400 with immediate effect, until further orders.

Vide Notification No. 49/2026-27 dated November 10, 2026, DGFT has amended the export policy for the item from ‘Free’ to ‘Prohibited’. The transitional arrangements under Para 1.05 of the Foreign Trade Policy (FTP), 2023, will apply.

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, which are essential inputs for battery manufacturing, electric vehicles (EVs), energy storage, electronics and renewable energy technologies.

The export prohibition is intended to ensure that domestically generated Black Mass is recycled and refined within India, securing feedstock availability for domestic recycling and refining units. The measure is expected to improve capacity utilisation, encourage investment and employment in the sector, and increase domestic recovery of critical minerals, thereby reducing import dependence and foreign exchange outgo.

According to the government, exports of Black Mass generated in India have diverted valuable secondary resources overseas, while domestic recyclers have, in some instances, had to import material to meet their requirements. Retaining this material within the country is expected to strengthen supply chains for battery manufacturing, EVs, energy storage and clean-energy technologies, while advancing circular economy and urban mining initiatives.

The measure complements the National Critical Mineral Mission (NCMM), including the INR 1,500 crore incentive scheme approved by the Union Cabinet in September 2025 to develop recycling capacity for the separation and production of critical minerals from secondary sources such as battery waste and e-waste. The export restriction is expected to ensure adequate domestic feedstock for recycling capacity being developed under the scheme.

The government said that the move would also support environmentally sound recycling of hazardous battery waste in accordance with applicable environmental regulations and align India with measures adopted by several major economies to retain critical mineral-bearing battery waste and Black Mass for domestic processing.

Commenting on the government’s decision, Prassann Daphal, Chief Executive Officer - Evergreen Recyclekaro India, said, “DGFT's decision to move lithium-ion battery black mass under ITC (HS) 85491400 from 'Free' to 'Prohibited' corrects a long-standing leak in India's critical minerals strategy. For years, the most valuable part of a spent battery, the lithium, nickel and cobalt concentrated in black mass, left the country as low-value scrap and came back as high-value imported material. That made no economic or strategic sense. Keeping the feedstock in India gives domestic recyclers who have invested in hydrometallurgical recovery the supply they need to run at real utilisation, and it gives cell manufacturers a credible local source of recovered materials. Whether the policy works now depends on enforcement.”