Centre bans export of lithium-ion battery 'black mass' to feed domestic recyclers
In one line: India has stopped the export of black mass, the metal-rich powder from shredded lithium-ion batteries, so that its recyclers can recover lithium, cobalt and nickel at home.
Published 12 November 2026. Written by Pratidin from the reports linked at the end; every fact checked by a separate review before publishing. How we work
The Directorate General of Foreign Trade (DGFT), under the Commerce Ministry, issued a notification late on Tuesday, 10 November 2026, changing the export policy for ITC (HS) code 85491400 from 'Free' to 'Prohibited' with immediate effect, until further orders. The code covers unsorted waste and scrap of primary cells, primary batteries and electric accumulators, including spent ones, that do not contain lead, cadmium or mercury. The notification identifies this as lithium-ion battery 'black mass'. The change was made under Section 3 read with Section 5 of the Foreign Trade (Development and Regulation) Act, 1992, and the Foreign Trade Policy, 2023, with the transitional arrangements of paragraph 1.05 of the policy applying. It is not a ban on all batteries or battery material.
Black mass is the dark powder left after end-of-life lithium-ion batteries and battery manufacturing waste are shredded. It contains lithium, cobalt, nickel, manganese and graphite, which recyclers can recover, for example through hydrometallurgy (dissolving metals in chemical solutions and separating them). The government's reasoning, as reported, is that Indian recycling capacity is underused because it lacks feedstock, and that some recyclers have had to import scrap while Indian black mass went abroad. It expects more domestic processing, investment and jobs, and lower import dependence for batteries, electric vehicles and energy storage.
The ban fits the National Critical Mineral Mission (NCMM), approved in January 2025, and its ₹1,500 crore recycling incentive scheme, approved on 3 September 2025, which aims for at least 270 kilo tonnes a year of recycling capacity and supports units that actually extract critical minerals, not those that only make black mass. Ajay Srivastava of the Global Trade Research Initiative said India has more black mass processing capacity than it generates and recorded no exports under this line in 2025-26, so the ban mainly shuts a future leak. He warned that exporters could try to declare black mass as cobalt powder or a nickel intermediate, so enforcement will depend on Customs checks.
Prelims facts
- DGFT moved ITC (HS) 85491400, lithium-ion battery black mass, from 'Free' to 'Prohibited' for export with immediate effect, by a notification issued on 10 November 2026.
- The legal basis is Section 3 read with Section 5 of the Foreign Trade (Development and Regulation) Act, 1992, and the Foreign Trade Policy, 2023.
- Black mass is shredded end-of-life battery material containing lithium, cobalt, nickel, manganese and graphite.
- The ₹1,500 crore critical mineral recycling scheme (approved 3 September 2025, FY 2025-26 to 2030-31) targets at least 270 kilo tonnes a year of recycling capacity under the NCMM.
- GTRI says India recorded no exports under this line in 2025-26 and has more processing capacity than black mass generation.
Quick recall
- Which body changed the export policy for lithium-ion battery black mass?
- The Directorate General of Foreign Trade (DGFT), Ministry of Commerce and Industry.
- ITC (HS) code for the banned battery waste?
- 85491400.
- Export policy change made on 10 November 2026?
- From 'Free' to 'Prohibited', with immediate effect, until further orders.
- Law under which DGFT made the change?
- Section 3 read with Section 5 of the Foreign Trade (Development and Regulation) Act, 1992, with the Foreign Trade Policy, 2023.
- What metals does black mass contain?
- Lithium, cobalt, nickel, manganese and graphite.
- Outlay and period of the critical mineral recycling scheme?
- ₹1,500 crore, FY 2025-26 to FY 2030-31 (approved 3 September 2025).
- Capacity target of the recycling scheme?
- At least 270 kilo tonnes a year of recycling capacity, about 40 kilo tonnes a year of critical minerals.
- Who warned of mis-declaration of black mass as cobalt powder?
- Ajay Srivastava of the Global Trade Research Initiative (GTRI).
Prelims practice question
'Black mass', recently in the news, refers to:
- A residue of coal washeries used in brick making
- Powder obtained by shredding spent lithium-ion batteries, rich in metals such as cobalt and nickel
- Carbon black produced from waste tyres by pyrolysis
- Sludge from common effluent treatment plants used as fuel
Show answer
Answer: (b) Powder obtained by shredding spent lithium-ion batteries, rich in metals such as cobalt and nickel. Black mass is the powder produced by shredding end-of-life lithium-ion batteries and battery manufacturing waste. It contains lithium, cobalt, nickel, manganese and graphite. DGFT prohibited its export on 10 November 2026.
Use this in UPSC Mains: previous-year questions
Recurring theme: Critical minerals, recycling and the circular economy
- How to use this
Use battery recycling as a remedial measure that cuts the demand for new mining, closing the answer with a circular-economy approach.
- India's ₹1,500 crore critical mineral recycling scheme (2025) targets at least 270 kilo tonnes a year of capacity to recover minerals from e-waste and battery scrap.
- In November 2026 DGFT prohibited export of lithium-ion battery black mass so that lithium, cobalt and nickel are recovered at home.
- Battery Waste Management Rules, 2022 use extended producer responsibility and bar landfilling and incineration of batteries.
Tests India's critical mineral policy; the black mass ban and the recycling scheme are the latest steps in the same strategy.
Mains practice question
India has prohibited the export of lithium-ion battery black mass. Discuss the role of battery recycling in securing critical minerals and the challenges in building a domestic recycling ecosystem. (250 words)
Model answer
On 10 November 2026 the DGFT moved lithium-ion battery black mass (ITC HS 85491400) from 'Free' to 'Prohibited' for export, to keep critical-mineral feedstock for Indian recyclers.
Why recycling matters for critical minerals
- Black mass holds lithium, cobalt, nickel, manganese and graphite, which India largely imports.
- Recycling is a near-term source while new mines and overseas assets take years.
- The National Critical Mineral Mission (January 2025) covers the chain from exploration to recycling.
- The ₹1,500 crore recycling scheme (3 September 2025) targets at least 270 kilo tonnes a year of capacity and supports units that extract minerals, not just shred batteries.
- Keeping material at home reduces landfilling and hazardous leakage, supporting the Battery Waste Management Rules, 2022, which rest on extended producer responsibility.
Challenges
- Feedstock: domestic capacity is underused because collection of spent batteries is weak.
- Enforcement: GTRI warns black mass may be mis-declared as cobalt powder or nickel intermediate.
- Technology: refining to battery-grade salts needs hydrometallurgy skills and capital.
- Informal sector: much e-waste is still handled informally, with health and pollution risks.
- Trade signals: export bans can deter investment if they look unpredictable.
Way forward
- Strengthen collection under EPR and traceability of battery packs.
- Use Customs risk profiling for look-alike exports.
- Pair the ban with capex support for refining.
- Set purity standards so recovered metals can re-enter cell making.
The ban is a useful signal, but secure supply will come from a working collection-to-refining chain, not from trade rules alone.
The basics
Why this matters
Electric vehicles, phone batteries and grid storage all depend on lithium, cobalt and nickel, minerals India mostly imports. Every spent battery is a small store of these metals. The export ban on black mass is a bet that India can mine its own waste.
What black mass is
When a used lithium-ion battery is discharged, dismantled and shredded, the plastic and metal casings are separated out. What remains is a fine dark powder from the electrodes. That powder is Black mass and battery recycling's central product.
- 1LithiumThe charge carrier in every lithium-ion cell
- 2Cobalt and nickelHigh-value cathode metals
- 3ManganeseCathode metal in many chemistries
- 4GraphiteMain anode material
From battery to new metal
Shredding alone does not give usable metal. Recovery needs chemical refining, usually hydrometallurgy, where metals are dissolved in solutions and separated, or pyrometallurgy, where they are smelted at high temperature.
- 1CollectSpent batteries gathered from users and factories
- 2Discharge and dismantlePacks made safe and opened
- 3ShredProduces black mass
- 4RefineHydrometallurgy recovers lithium, cobalt, nickel salts
- 5ReuseRecovered metals go back into new cells
The policy logic
The government's view is that Indian refiners were short of feedstock while black mass could be sold abroad. GTRI's Ajay Srivastava says India has more processing capacity than it generates. So the ban is meant to keep the powder at home for the refining step, the step the Critical mineral recycling incentive scheme pays for.
- Export policy 'Free'
- Black mass could leave before metals were recovered
- Some recyclers imported scrap
- Export policy 'Prohibited' until further orders
- Feedstock kept for Indian refiners
- Customs checks needed against mis-declaration
The wider frame
The ban sits inside the National Critical Mineral Mission, which covers exploration, overseas assets and recycling, and alongside the Battery Waste Management Rules, 2022, which make producers responsible for collecting spent batteries. Without strong collection, a ban on exports cannot create feedstock that is never gathered in the first place.
Go deeper
Why it matters for UPSC
It joins three syllabus threads: critical minerals and energy transition (GS3 economy), waste management and pollution (GS3 environment), and trade policy tools (export prohibition under the 1992 Act). Prelims can ask what black mass is or which law DGFT used.
The core idea
Black mass and battery recycling turns spent batteries into a secondary source of critical minerals. The National Critical Mineral Mission treats recycling as the fastest route to supply, and the Critical mineral recycling incentive scheme funds refiners. The Battery Waste Management Rules, 2022 are supposed to bring spent batteries to those refiners. The export ban keeps the intermediate product inside the country.
Numbers and dates to remember
- Notification: 10 November 2026, effective immediately
- ITC (HS) code: 85491400; 'Free' to 'Prohibited'
- Law: Section 3 read with Section 5, FT(D&R) Act, 1992
- Recycling scheme: ₹1,500 crore, approved 3 September 2025, FY 2025-26 to 2030-31
- Target: at least 270 kilo tonnes a year of capacity
Where to go next
- Black mass and battery recycling: what the powder is and how metals are recovered
- National Critical Mineral Mission: India's plan for mineral supply security
- Critical mineral recycling incentive scheme: who gets money to refine
- Battery Waste Management Rules, 2022: how spent batteries are meant to be collected
Go deeper: can an export ban build a recycling industry?
Arguments for the ban
- It stops the cheapest part of the chain (shredding) from leaking value abroad while the costly part (refining) stays unbuilt.
- It complements the Critical mineral recycling incentive scheme, which deliberately does not fund units that only make black mass.
- It supports the National Critical Mineral Mission aim of supply resilience for EVs and storage, where lithium, cobalt and nickel are largely imported.
- Keeping hazardous battery waste under Indian rules supports the polluter-pays logic of the Battery Waste Management Rules, 2022.
Arguments for caution
- GTRI notes India recorded no exports under the line in 2025-26, so the ban mostly guards against a future leak rather than solving today's shortage.
- The real gap is collection: much e-waste moves through informal channels, so Black mass and battery recycling plants may still lack feed.
- Mis-declaration risk (as cobalt powder or nickel intermediate) shifts the burden to Customs.
- Frequent changes in export policy can make investors wary.
Comparisons Several mineral-rich countries have used export restrictions on raw ores to force local processing. India is applying the same idea to urban waste, a so-called urban mine.
Exam angle Frame the ban as one tool in a circular-economy strategy: collection under EPR, refining capacity through incentives, and trade policy to keep feedstock at home.
Black mass and battery recycling
What the powder is and how metals are recovered
In one line: Black mass is the electrode powder left after spent lithium-ion batteries are shredded, and refining it recovers lithium, cobalt, nickel, manganese and graphite.
How it is made
Spent batteries are discharged, dismantled and shredded. Casings, copper and aluminium foils are separated, leaving the dark powder from the cathode and anode. Battery manufacturing scrap can also be processed into black mass.
How metals come back
Hydrometallurgy dissolves the metals in chemical solutions and separates them into salts that can be used again in cells. Pyrometallurgy smelts the material at high temperature. Recovering metals can be cheaper than mining fresh reserves.
Why it is in the news
DGFT banned the export of black mass on 10 November 2026 so that Indian refiners get the feedstock.
Where to go next
National Critical Mineral Mission
India's plan for mineral supply security
In one line: The National Critical Mineral Mission, approved by the Union Cabinet in January 2025 and run by the Ministry of Mines, aims to secure minerals such as lithium, cobalt and nickel across the full value chain.
What it covers
The mission spans exploration at home, acquisition of mineral assets abroad, processing, and recycling. Critical minerals are those that are essential for technologies such as batteries, electronics and renewable energy and whose supply is at risk.
Why recycling is part of it
New mines and overseas assets take years to deliver. Recycling battery waste and e-waste is a near-term source, which is why the mission includes a dedicated recycling incentive scheme.
Why it is in the news
The government links the black mass export ban to the mission's goal of building domestic recycling and supply chain resilience.
Where to go next
National Critical Mineral Mission: every story that connects to it (4)
Critical mineral recycling incentive scheme
Who gets money to refine
In one line: A ₹1,500 crore scheme, approved by the Cabinet on 3 September 2025 for FY 2025-26 to FY 2030-31, pays recyclers to build capacity that extracts critical minerals from e-waste and battery scrap.
Main features
- Eligible feedstock: e-waste, lithium-ion battery scrap and other scrap such as catalytic converters from end-of-life vehicles.
- Capex subsidy of 20% on plant and machinery, plus an opex subsidy linked to incremental sales.
- One-third of the outlay is reserved for small and new recyclers, including start-ups.
- It supports units that actually extract minerals, not units that only produce black mass.
Expected outcomes
At least 270 kilo tonnes a year of recycling capacity, about 40 kilo tonnes a year of critical mineral output, about ₹8,000 crore of investment and close to 70,000 jobs.
Where to go next
Battery Waste Management Rules, 2022
How spent batteries are meant to be collected
In one line: Rules framed by the Ministry of Environment, Forest and Climate Change in 2022 make battery producers responsible for collecting and recycling the batteries they put on the market.
Key ideas
- They replaced the earlier battery handling rules of 2001.
- They cover electric vehicle, portable, automotive and industrial batteries.
- They rest on extended producer responsibility (EPR): producers must meet collection and recycling targets.
- They bar disposal of batteries in landfills and by incineration.
- They apply environmental compensation on the polluter-pays principle.
Why it matters now
An export ban keeps black mass at home, but only a working EPR system brings spent batteries out of drawers, garages and informal scrap yards to licensed recyclers.
Where to go next
Take the 12 November 2026 quiz: 30 Prelims-style questions with answers