DGFT Bans Export of Lithium-Ion Battery Black Mass

The Directorate General of Foreign Trade (DGFT), under the Department of Commerce, has barred the export of Lithium-Ion Battery Black Mass. Notification No. 49/2026-27, dated 10 November 2026, shifted the export policy for the item from Free to Prohibited with immediate effect and until further orders. The transitional arrangements of Para 1.05 of the Foreign Trade Policy, 2023 will apply to consignments already in the pipeline.

What black mass is

The item sits under ITC(HS) Code 85491400, a line that covers waste and scrap of primary cells, primary batteries and electric accumulators, as well as spent cells and accumulators that are unsorted and free of lead, cadmium and mercury. Black mass itself is the powder left after end-of-life lithium-ion batteries and battery manufacturing waste are shredded. That powder still holds recoverable quantities of lithium, cobalt, nickel and manganese, all of them critical minerals.

Why the ban

Critical minerals are the raw material of electric mobility, advanced chemistry cell batteries, energy storage, electronics and renewable energy, and India leans heavily on imports for several of them. Recycling battery waste is the fastest route to a home-grown supply. India's capacity to recycle such waste and refine minerals out of it has grown, but it has been running below potential for want of feedstock. Black mass generated in the country was being shipped abroad even as domestic recyclers imported material to keep their plants busy.

What the government expects

• Assured feedstock for recycling and refining units, and better capacity utilisation.
• Fresh investment and employment in the recycling sector.
• Higher domestic recovery of lithium, cobalt and nickel, cutting import dependence and the foreign exchange that goes with it.
• Stronger supply chains for battery making, electric vehicles, energy storage and clean energy, in line with Aatmanirbhar Bharat.
• A push to the circular economy and to urban mining, which lessens the need for primary mining.

How it fits other policy

The step supports the National Critical Mineral Mission, including the Rs 1,500 crore incentive scheme the Union Cabinet approved in September 2025 to build capacity for separating and producing critical minerals from secondary sources such as battery waste and electronic waste. Keeping black mass at home ensures that this new capacity has material to work on. Several major economies have adopted similar measures to retain battery waste for their own processing. The notification is available on the DGFT website.