The Government of India has prohibited the export of lithium-ion battery black mass and specified categories of battery waste and scrap with immediate effect, in a move aimed at strengthening domestic battery recycling and securing critical mineral supplies. The Directorate General of Foreign Trade (DGFT), under the Ministry of Commerce and Industry, has amended the export policy for the material under ITC (HS) Code 85491400 from ‘Free’ to ‘Prohibited’, until further orders.
The restriction applies to unsorted waste and scrap of primary cells, primary batteries and electric accumulators, including spent batteries, that do not contain lead, cadmium or mercury. The amendment has been notified under the Foreign Trade (Development and Regulation) Act, 1992, read with the Foreign Trade Policy 2023.
Under the earlier policy, exports of the specified category of battery waste and scrap were permitted under the ‘Free’ classification. With the revised notification, exporters will no longer be permitted to export the covered material. The restriction specifically applies to the category identified in the notification and does not constitute a blanket prohibition on all battery-related materials.
India Moves To Retain Battery Recycling Materials
Lithium-ion battery black mass is a powder-like material generated during the dismantling, crushing and processing of used lithium-ion batteries. It contains recoverable materials such as lithium, nickel, cobalt, manganese and graphite, depending on the battery chemistry.
Through further processing, particularly hydrometallurgical methods, recyclers can recover valuable materials from black mass and convert them into compounds used in battery manufacturing. These recovered materials can support the production of batteries for electric vehicles, consumer electronics and energy storage systems.
Restricting exports of the specified battery waste category could help retain these materials within India’s domestic recycling ecosystem, supporting the development of local processing capabilities and strengthening the availability of secondary raw materials for battery manufacturing.
Critical Mineral Processing Scheme To Support Domestic Capacity
The export restriction comes alongside the government’s efforts to develop domestic critical mineral processing capabilities. The Union Cabinet, chaired by Prime Minister Narendra Modi, recently approved the Capex Support Scheme to Promote Critical Mineral Processing, with a financial outlay of ₹2,814 crore over five years from FY 2026–27 to FY 2030–31.
The scheme aims to establish domestic processing infrastructure, promote value addition within India, reduce import dependence and develop the critical mineral value chain.
Under the programme, capital subsidies covering 30% of eligible investments will support the establishment of four critical mineral processing plants, comprising two lithium processing plants with a minimum capacity of 30 kt each and two nickel processing plants with a minimum capacity of 50 kt each.
The maximum capital support has been capped at ₹500 crore per lithium beneficiary and ₹900 crore per nickel beneficiary.
India currently remains significantly dependent on imports for refined intermediates and high-purity critical mineral materials, owing to the relatively nascent stage of domestic beneficiation and processing infrastructure for lithium, nickel and cobalt.
The export policy amendment and critical mineral processing support scheme together form part of the government’s efforts to strengthen domestic material recovery, processing and value addition, supporting the development of India’s battery manufacturing and recycling ecosystem.
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