Government Bans Export of Lithium-Ion Battery Scrap and Black Mass to Secure Domestic Supply

The Indian government has prohibited the export of unsorted waste and scrap of lithium-ion batteries, commonly referred to as lithium-ion battery black mass. The regulatory change is designed to ensure greater domestic availability of mineral-rich material that serves as a vital secondary source for battery manufacturing, energy storage, and advanced industrial applications.

According to a notification issued by the Directorate General of Foreign Trade (DGFT), the export policy for waste and scrap of primary cells, batteries, and electric accumulators—specifically unsorted lithium-ion battery black mass not containing lead, cadmium, or mercury—has been amended from 'Free' to 'Prohibited' with immediate effect until further orders. The notification stated that the transitional arrangement under Para 1.05 of the Foreign Trade Policy, 2023, will apply.

Battery black mass is a powder-like substance derived from shredding and processing used lithium-ion batteries. It contains valuable metals and minerals such as lithium, cobalt, nickel, manganese, and graphite. These elements can be extracted, recovered, and reused to manufacture new batteries.

This material is a critical input for the domestic battery recycling industry. The policy shift comes as India works to develop robust local capabilities across the electric vehicle and energy storage value chains, while actively lowering its dependence on imported critical minerals.

Beyond electric vehicles, the recovered minerals can be utilized as inputs for energy storage systems, renewable energy infrastructure, consumer electronics, and other advanced manufacturing sectors.

Industry sources indicate that restricting exports will enable local recycling companies to secure larger quantities of domestically generated battery waste. This steady supply of scrap for processing and mineral recovery supports broader national objectives to build a functional circular economy for batteries and fortify domestic supply chains for critical minerals.

"Banning the export of lithium-ion battery black mass is a strategic policy move that secures critical raw materials for India's domestic manufacturing and recycling ecosystems. By retaining this mineral-rich scrap within the country, local recyclers and EV component makers gain better access to essential elements like lithium, cobalt, and nickel. This decision directly supports the growth of India's circular economy and reduces reliance on foreign supply chains for advanced energy storage and electric vehicle production." — Dr. Shishir Gupta, Founder & CEO, StartupLanes