India has barred exports of lithium-ion battery black mass to direct mineral-bearing waste to domestic processors as the country seeks to reduce its reliance on imported critical minerals.
DGFT Notification No. 49/2026-27, issued Tuesday, Nov. 10, took effect immediately and remains in place until a later order. Transitional provisions in India's Foreign Trade Policy, 2023, also apply, the Commerce Ministry said. The notice identifies black mass under ITC (HS) code 85491400, a tariff heading for unsorted waste and scrap from primary cells, batteries and electric accumulators that contain no lead, cadmium or mercury.
The Commerce Ministry says plants that recycle battery waste and refine minerals are not being fully used because they lack enough material. It reports that some black mass produced in India has been exported, while some local recyclers have imported it. The government expects keeping the material in India to improve feedstock access and facility use and encourage investment and employment. Domestic processors stand to benefit, while exporters of covered material lose the ordinary export route under the ban.
Shredding used lithium-ion batteries and battery-production waste produces a powder called black mass, the ministry says. It identifies lithium, cobalt, nickel and manganese as minerals that can be recovered from the material.
The Economic Times, citing the Global Trade Research Initiative (GTRI), reported that India recorded no exports classified under code 85491400 in FY2025-26.
The restriction comes alongside government support for domestic mineral recovery. The Cabinet approved a ₹1,500 crore critical-mineral recycling incentive scheme on Sept. 3, 2025, running through FY2030-31. Lithium-ion battery scrap is eligible, with incentives tied to mineral extraction, the Cabinet said.
On Nov. 4, 2026, the Cabinet approved a separate ₹2,814 crore processing scheme covering FY2026-27 through FY2030-31. It provides a 30% capital subsidy for four plants: two lithium facilities with a minimum capacity of 30,000 metric tonnes each and two nickel facilities with a minimum capacity of 50,000 metric tonnes each, according to the Cabinet. The export restriction remains in effect until DGFT issues another order.
