India Bans Lithium-Ion Battery Black Mass Exports: What Recyclers and Battery Makers Should Know
DGFT has moved lithium-ion battery black mass (ITC(HS) 85491400) from Free to Prohibited for export, with immediate effect and until further orders. Here is what is covered, why, and where the ₹1,500 crore recycling scheme stands.
India has stopped the export of lithium-ion battery black mass. The Directorate General of Foreign Trade (DGFT) issued Notification No. 49/2026-27, dated 10 November 2026, moving the item from "Free" to "Prohibited" for export, with immediate effect and until further orders.
If you run a battery recycling, shredding or refining business, or you make EVs or batteries and sell your production scrap, this changes who can buy your material. Here is what the official release says, what the trade press adds, and what is still unclear.
What exactly has been banned
The ban applies to goods under ITC(HS) Code 85491400. According to the Press Information Bureau (PIB) release on the notification, this code covers:
- Waste and scrap of primary cells, primary batteries and electric accumulators.
- Spent cells, batteries and accumulators.
- In both cases, only material that is unsorted and does not contain lead, cadmium or mercury.
The notification specifically describes the item as lithium-ion battery black mass. PIB explains black mass as the powdery material you get from shredding end-of-life lithium-ion batteries and battery manufacturing waste. It contains recoverable lithium, cobalt, nickel and manganese.
The release says the transitional arrangements under Para 1.05 of the Foreign Trade Policy (FTP), 2023 will apply. None of the sources we reviewed explain what those arrangements mean for shipments or contracts already in progress. Shanghai Metals Market (SMM), citing PIB, notes that no further detail was given.
Why the government did this
The government's stated reasoning, from the PIB release:
- India depends substantially on imports for several critical minerals used in EVs, advanced chemistry cell batteries, energy storage, electronics and renewable energy.
- The country's capacity to recycle battery waste and refine critical minerals from it has grown considerably, but it is not being fully used because there is not enough feedstock.
- Exports of black mass made in India send this material abroad, while domestic recyclers have, in some cases, had to import material to meet their needs.
The release says the ban is expected to assure feedstock for domestic recycling and refining units, improve their capacity utilisation and encourage further investment and employment in the sector. It also links the step to the circular economy, "urban mining" and Aatmanirbhar Bharat, and says several major economies have adopted similar measures to keep battery waste and black mass for domestic processing.
The capacity gap, as industry sees it
Business Today reports industry estimates that India generates less than 15,000 MT of black mass a year, against more than 100,000 MT of annual battery shredding capacity and over 60,000 MT of refining capacity. These are industry estimates, not government figures.
Business Today also reports that domestic recyclers have faced feedstock shortages despite large investments in processing capacity, and that industry players argued exports reduce the material available to local processors.
The Material Recycling Association of India (MRAI) welcomed the restriction. In MRAI's words: "We appreciate the Government's efforts to conserve and secure India's precious critical mineral resources."
SMM's own analysis is more cautious: it says the benefit to domestic processors depends on their ability to scale downstream recovery of battery-grade lithium, cobalt and nickel.
How it connects to the ₹1,500 crore recycling scheme
PIB says the ban complements the government's work under the National Critical Mineral Mission (NCMM), including the ₹1,500 crore Incentive Scheme approved by the Union Cabinet in September 2025. That scheme supports recycling capacity to separate and produce critical minerals from secondary sources such as battery waste and e-waste. Keeping black mass in India, the release says, will help the capacity being built under the scheme get enough domestic feedstock.
What the scheme's official portal, run by JNARDDC as the Project Management Agency, states:
- The outlay is Rs 1,500 Cr over six years, FY 2025-26 to 2030-31.
- It offers Capex and Opex incentives for recycling capacity.
- Applicants fell into two groups: large, established entities (10 KTPA threshold) and small or new entities, including start-ups (5 KTPA threshold), with Greenfield and Brownfield categories.
- The application window ran from 2 October 2025 to 1 April 2026. It has closed. The portal lists no new call for applications.
Energetica India reported that the Ministry of Mines approved 58 companies under the scheme: 20 in March and 38 at the Executive Committee's 29 April meeting. Those firms committed about 850 KTPA of recycling capacity and an estimated INR 5,000 crore of investment, with incentives released in stages as capacity is built and recycling starts. The report says the scheme has moved into project execution.
So the scheme is not open to new applicants today, and no new round has been announced. If you were not among the approved companies, the export ban helps you mainly by keeping feedstock in the country, not through this scheme.
A separate policy: lithium and nickel processing
Reuters reported that the notification follows Cabinet approval of a separate incentive policy worth 28.14 billion rupees to boost domestic processing of lithium and nickel. That is a different policy from the ₹1,500 crore recycling scheme above. Reuters also notes India's targets of EVs making up 30% of new car sales and 80% of new two- and three-wheeler sales by 2030.
What this means for you
If you shred batteries and sold black mass abroad: that route is closed for now. Your buyers will have to be domestic refiners. Check how Para 1.05 applies to any pending shipment with your customs adviser or the DGFT notification itself, because no source we reviewed explains it.
If you refine or recover metals: the stated aim is more feedstock for you. Whether it reaches you depends on how much black mass India actually generates, and industry estimates put that well below installed capacity.
If you make EVs or batteries and generate manufacturing scrap: black mass from your scrap now has to be sold to domestic recyclers. It is worth reviewing any recycling contracts that assumed an export buyer.
If you hoped to apply to the recycling incentive scheme: you cannot right now. The application window closed on 1 April 2026 and no new round has been announced. Be wary of anyone offering to "get you in".
We will update this page if DGFT clarifies the transitional arrangements or the Ministry of Mines opens a new round.
Sources: Press Information Bureau (DGFT release); Business Today; Reuters via Kitco; Shanghai Metals Market; Energetica India; JNARDDC scheme portal.
Cover photo: Vanya Smythe on Unsplash
