In a major push to secure critical mineral supplies and strengthen India's battery recycling industry, the government has banned the export of Lithium-Ion Battery Black Mass with immediate effect, directing that the valuable battery waste be retained for domestic processing.

 

The Directorate General of Foreign Trade (DGFT), under the Department of Commerce, has amended the export policy for Lithium-Ion Battery Black Mass and notified the ban.

 

The move is aimed at preventing the outflow of valuable mineral-rich waste and ensuring that India’s growing battery recycling and refining industry has access to a steady domestic supply of raw material.

 

Black Mass, a powdery material generated by shredding end-of-life lithium-ion batteries and battery manufacturing waste, contains recoverable quantities of critical minerals such as lithium, cobalt, nickel and manganese. These minerals are vital to electric vehicle manufacturing, advanced chemistry cell batteries, energy storage systems, electronics and renewable energy technologies.

 

The government’s decision comes amid concerns that exports of domestically generated Black Mass are depriving Indian recyclers of essential feedstock. Despite the expansion of the country's battery recycling and critical mineral recovery capacity, several facilities are operating below their potential because of inadequate raw material availability.

 

The situation has been particularly concerning as domestic recyclers have, in some cases, been forced to import Black Mass to meet their processing requirements, even as valuable material generated within India is shipped overseas.

 

By prohibiting exports, the government intends to reverse this imbalance, secure feedstock for domestic recycling units and encourage greater investment in the sector.

 

The measure is expected to improve capacity utilisation, generate employment and significantly increase the recovery of lithium, cobalt, nickel and other critical minerals within the country. Higher domestic recovery could also reduce India's dependence on imported minerals and lower the associated foreign exchange outgo.

 

The export ban is expected to strengthen India's supply chains for battery manufacturing, electric vehicles, energy storage and clean-energy technologies, while advancing the broader Aatmanirbhar Bharat vision.

 

It also gives a push to the circular economy through ‘urban mining’ — recovering valuable resources from discarded products and industrial waste rather than relying entirely on fresh extraction from mines.

 

Retaining Black Mass within India is expected to reduce dependence on primary mining while ensuring that hazardous battery waste is processed and recycled domestically in accordance with applicable environmental regulations.

 

The decision complements the government's National Critical Mineral Mission (NCMM) and its efforts to build a robust domestic ecosystem for critical mineral recovery.

 

It also supports the Rs 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, including battery waste and electronic waste.

 

With the export tap now shut, domestically generated Black Mass can help supply the recycling infrastructure being developed under the scheme, ensuring that new capacity has access to adequate raw material.

 

The move also brings India in line with the approach adopted by several major economies that are seeking to retain critical mineral-bearing battery waste and Black Mass for domestic processing.

 

The larger message is clear: India is moving to treat discarded lithium-ion batteries not as waste for export, but as a strategic domestic resource — one that could play a crucial role in securing the country's critical mineral supply chains and powering its clean-energy transition.