DGFT prohibits export of lithium-ion battery black mass

The Directorate General of Foreign Trade (DGFT), under the Department of Commerce, has prohibited the export of lithium-ion battery black mass to ensure its availability for domestic recycling and critical mineral recovery.

Through Notification No. 49/2026-27 dated 10 November 2026, DGFT has changed the export policy for the material under ITC(HS) Code 85491400 from ‘Free’ to ‘Prohibited’ with immediate effect and until further orders. The transitional arrangements under Para 1.05 of the Foreign Trade Policy (FTP), 2023, will apply.

Black mass is a powdery material obtained by shredding used lithium-ion batteries and battery manufacturing waste. It contains recoverable quantities of critical minerals, including lithium, cobalt, nickel and manganese.

These minerals are essential for electric mobility, advanced chemistry cell batteries, energy storage, electronics and renewable energy. India depends substantially on imports for several of these resources, making battery waste recycling an important source of domestic supply.

According to the government, India's capacity to recycle battery waste and recover critical minerals has grown considerably. However, this capacity is not being fully utilised due to inadequate availability of raw material. While black mass generated in India is being exported, domestic recyclers have, in some cases, had to import the material to meet their requirements.

The export prohibition aims to ensure that black mass generated in India is recycled and refined within the country. It is expected to improve feedstock availability for domestic recycling units, increase their capacity utilisation and encourage further investment and employment in the sector.

The move is also expected to increase the domestic recovery of lithium, cobalt, nickel and other critical minerals, reducing import dependence and foreign exchange outgo. It will support supply chains for battery manufacturing, electric vehicles, energy storage and clean-energy technologies.

The measure also supports the government's efforts to promote a circular economy and urban mining, reducing dependence on primary mining while ensuring environmentally sound recycling of hazardous battery waste in accordance with applicable regulations.

The decision complements initiatives under the National Critical Mineral Mission (NCMM), including the ₹1,500 crore Incentive Scheme 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 such as battery waste and e-waste.

Retaining black mass within the country will help ensure that recycling capacity being developed under the scheme has access to adequate domestic feedstock.

The government said the measure is also in line with steps taken by several major economies to retain critical mineral-bearing battery waste and black mass for domestic processing.