How India’s lithium-ion battery black mass export ban aims to reduce dependence on China for critical minerals

India has prohibited the export of lithium-ion battery black mass in a move aimed at retaining valuable critical minerals within the country, strengthening domestic recycling capabilities and reducing dependence on imports, particularly from China.

The Directorate General of Foreign Trade (DGFT), under the Ministry of Commerce, amended the export policy for lithium-ion battery black mass from ‘Free’ to ‘Prohibited’ with immediate effect through Notification No. 49/2026-27, dated 10 November 2026.

The government said the decision would ensure that battery waste generated in India is recycled and refined domestically rather than exported.

The move comes as India seeks to secure supplies of critical minerals such as lithium, cobalt, nickel and manganese, which are essential for electric vehicle (EV) batteries, renewable energy storage, electronics and advanced manufacturing.

What is lithium-ion battery black mass?

Black mass is a powder-like material recovered by shredding and processing discarded lithium-ion batteries and battery manufacturing waste. It contains valuable minerals, including lithium, cobalt, nickel and manganese, which can be extracted and reused in battery production.

Recycling black mass offers an alternative source of critical minerals, reducing the need for fresh mining and dependence on imported raw materials. It is particularly important for India, which has limited domestic reserves of several battery minerals.

Why has India banned black mass exports?

The government said domestic battery recyclers and critical mineral recovery units have been unable to utilise their full processing capacity because of inadequate availability of raw materials.

Despite the expansion of India’s recycling infrastructure, black mass generated domestically has continued to flow overseas.

In some instances, Indian recyclers have also had to import the material to meet their requirements.

The export prohibition seeks to address this mismatch by ensuring that domestically generated black mass remains available to Indian recycling and refining companies.

How will the ban reduce India’s dependence on China?

China has a dominant position in global critical mineral supply chains, particularly in processing and refining. It accounts for roughly 60% of rare earth mining, 70-90% of processing and separation, and around 94% of permanent magnet manufacturing.

Its influence also extends to the processing of minerals such as lithium, cobalt and graphite, which are essential for batteries, electric vehicles and clean-energy technologies.

India’s dependence on imported critical minerals leaves its manufacturing industries vulnerable to supply disruptions and geopolitical tensions.

By retaining black mass within the country, India aims to recover lithium, cobalt, nickel and other valuable materials from discarded batteries and develop alternative domestic sources.

The ban will not immediately eliminate India’s dependence on Chinese mineral supplies. However, developing domestic recycling and refining capabilities could gradually reduce this vulnerability.

How big is India’s battery recycling capacity?

According to government data cited by The Indian Express, 57 lithium-ion battery recyclers are registered on the Central Pollution Control Board’s (CPCB) Battery Waste Extended Producer Responsibility (EPR) portal.

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Together, they have an annual processing capacity of 5.17 lakh metric tonnes. However, their estimated input capacity specifically for processing lithium-ion battery black mass is around 75,500 metric tonnes annually, as per the report.

The government expects the export restrictions to improve feedstock availability and help domestic facilities operate more efficiently.

How does the ban fit into India’s critical minerals strategy?

The measure complements the ₹1,500 crore Incentive Scheme for Critical Mineral Recycling, approved by the Union Cabinet in September 2025.

The scheme seeks to develop recycling capacity to recover critical minerals from secondary sources, including battery waste and electronic waste.

It also supports the National Critical Mineral Mission (NCMM), which aims to strengthen domestic mineral supply chains through exploration, processing and recycling.

Separately, the government has announced a ₹2,814 crore scheme providing capital expenditure support for developing domestic critical mineral processing capabilities, including lithium and nickel processing.

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Why is battery recycling strategically important?

As demand for EVs, renewable energy storage and advanced electronics rises, securing battery mineral supplies has become an economic and strategic priority.

Recycling supports ‘urban mining’, which involves recovering valuable resources from discarded products and industrial waste instead of relying entirely on fresh mining.

For India, retaining black mass could help establish a circular economy in which minerals recovered from old batteries are reused to manufacture new ones.

It could also reduce dependence on overseas suppliers while supporting environmentally sound disposal and processing of hazardous battery waste.

The export ban is therefore not merely a waste-management measure.

It is part of India’s broader effort to build strategic autonomy in critical minerals and reduce vulnerabilities in supply chains dominated by China.