The Directorate General of Foreign Trade (DGFT) has prohibited the export of unsorted waste and scrap from lithium-ion batteries, a move designed to strengthen India's domestic recycling capabilities. The notification, issued by the Ministry of Commerce and Industry, amends the export policy for specified battery materials from 'Free' to 'Prohibited' with immediate effect. According to The Hindu BusinessLine, the ban specifically targets waste that does not contain lead, cadmium, or mercury, commonly referred to as lithium-ion battery black mass.
Black mass is a powdery material recovered from shredding end-of-life batteries and manufacturing waste, containing recoverable quantities of critical minerals such as lithium, cobalt, nickel, and manganese. ThePrint reported that the government aims to ensure this secondary resource is refined within the country rather than diverted abroad. Inc42 noted that India’s capacity to process this material currently exceeds its domestic generation, leading to exports that reduce the feedstock available for local refiners. The measure is intended to improve capacity utilisation and encourage further investment in the battery recycling sector.
The policy aligns with the government’s broader strategic push to reduce import dependence on critical minerals, which are essential for electric mobility and renewable energy storage. The Hindu BusinessLine highlighted that the prohibition supports the National Critical Mineral Mission, which includes a 1,500-crore incentive scheme for domestic recycling capacity. Ajay Srivastava, founder of the think tank GTRI, stated that India’s export of these goods was nil in the last fiscal year, suggesting the ban is a preventive measure to secure future shipments for domestic refiners.
According to ThePrint, effective enforcement will depend on customs authorities verifying how the material was produced and declared, as exporters can sometimes evade scrutiny by labelling the waste as cobalt powder or other industrial products. The notification also applies a transitional arrangement under the Foreign Trade Policy of 2023. By retaining these materials, the government seeks to advance a circular economy and support environmentally sound recycling of hazardous battery waste within India.