Centre Bans Export of Lithium-Ion Battery’s ‘Black Mass’

India’s Centre has taken a significant step to safeguard the country’s critical minerals supply chain by banning the export of ‘black mass’ – a mineral-enriched product derived from recycled lithium-ion batteries. The Directorate General of Foreign Trade (DGFT), under the Ministry of Commerce and Industry, issued this directive via a circular, effective immediately. ‘Black mass’ is a powder extracted from the shredding of end-of-life lithium-ion batteries, containing valuable metals like lithium, cobalt, and nickel.

These metals can be recycled and reused, reducing costs compared to mining fresh reserves. As India relies heavily on imports for these raw materials, black mass holds strategic importance for local sourcing. The regulation aligns with the government’s initiative to reduce dependence on foreign imports of critical minerals. In September 2025, the Centre approved ₹1,500 Cr in incentives for developing domestic recycling capacity for critical minerals.

This was followed by the launch of the Capex Support Scheme for Critical Mineral Processing, committing ₹2,814 Cr to set up plants for lithium and nickel processing. According to the Observer Research Foundation, India has the potential to recycle up to 60,000 tonnes of batteries annually, generating around 30,000 tonnes of black mass.

However, current processing capacity is insufficient to harness the full economic value of this resource. Exporting black mass overseas remains the norm due to limited domestic refining capabilities. This new restriction aims to retain these critical raw materials within Indian borders, contributing to a more resilient supply chain.

The battery recycling market in India reached $603.9 Mn in 2025 and is projected to grow to $1.3 Bn by 2034, with a compound annual growth rate (CAGR) of 8.65%. As the battery manufacturing ecosystem expands, securing domestic processing of strategic materials will be crucial for sustaining a robust supply chain.