DGFT Prohibits Export of Used Lithium-Ion
Battery Black Mass but Import is Restricted Requiring Licence and Subject to a
Stiff 18 percent IGST So Supply to Recyclers is Limited to Domestic Sources
Ø The measure aims to ensure domestic
availability of critical minerals, strengthen battery recycling capacity and
reduce import dependence
Ø Measure to complement Government’s
₹1,500 crore Incentive Scheme for Critical Mineral Recycling
·
Export
Prohibited: DGFT has amended the export policy of Lithium-Ion Battery Black
Mass under ITC(HS) Code 85491400 from ‘Free’ to ‘Prohibited’ with immediate
effect and until further orders.
·
Regulatory
Reference: DGFT Notification No. 49/2026-27 dated 10 November 2026.
Transitional arrangements under Para 1.05 of FTP 2023 will apply.
·
Critical
Minerals Recovery: Black Mass contains recoverable lithium, cobalt, nickel and
manganese, which are essential for batteries, electric vehicles, electronics
and renewable energy.
·
Assured
Domestic Feedstock: The prohibition aims to ensure the availability of locally
generated Black Mass for Indian recycling and refining industries, improving
their capacity utilisation.
·
Reduce
Import Dependence: Domestic recovery of critical minerals is expected to reduce
imports and foreign exchange outgo.
·
Boost
Investment and Employment: The measure is expected to encourage investment,
expand domestic recycling capacity and generate employment.
·
Support
Battery and EV Industries: Domestic availability of recovered minerals will
strengthen supply chains for battery manufacturing, electric vehicles and
energy storage.
·
Complement
Government Scheme: The decision supports the ₹1,500 crore Critical
Mineral Recycling Incentive Scheme, approved in September 2025 under the
National Critical Mineral Mission (NCMM).
·
Circular
Economy: The measure promotes urban mining, sustainable recycling of battery
waste and reduced dependence on primary mining.
·
Global
Trend: The decision follows similar measures by major economies to retain
critical mineral-bearing battery waste for domestic processing.
[ABS News Service/12.11.2026]
The Directorate General of Foreign
Trade (DGFT), Department of Commerce, has prohibited the export of Lithium-Ion
Battery Black Mass falling under ITC(HS) Code 85491400. Vide Notification No.
49/2026-27 dated 10 November 2026, the export policy of the item has been
amended from ‘Free’ to ‘Prohibited’ with immediate effect and until further
orders. The transitional arrangements under Para 1.05 of the Foreign Trade
Policy (FTP), 2023, will apply.
ITC(HS) Code 85491400 covers waste
and scrap of primary cells, primary batteries and electric accumulators, as
well as spent cells, batteries and accumulators, which are unsorted and do not
contain lead, cadmium or mercury. The Notification specifically describes the
item as Lithium-Ion Battery Black Mass. Black Mass is the powdery material
obtained from shredding end-of-life lithium-ion batteries and battery
manufacturing waste. It contains recoverable quantities of critical minerals,
including lithium, cobalt, nickel and manganese.
Critical minerals are essential
inputs for electric mobility, advanced chemistry cell batteries, energy
storage, electronics and renewable energy. India depends substantially on
imports for several of these minerals. Recycling battery waste is among the
quickest and most sustainable ways of developing a domestic supply of these
resources. While the country's capacity to recycle battery waste and refine
critical minerals from it has grown considerably, it is not being fully
utilised due to inadequate feedstock availability. Exports of Black Mass
generated in India divert this valuable secondary resource abroad, while
domestic recyclers have, in some cases, had to import material to meet their
requirements.
The export prohibition is intended to
ensure that Black Mass generated in India is recycled and refined within the
country. The measure is expected to assure feedstock availability for domestic
recycling and refining units, improve their capacity utilisation and encourage
further investment and employment in the sector. It will increase domestic
recovery of lithium, cobalt, nickel and other critical minerals, thereby
reducing import dependence and the associated foreign exchange outgo. It will
also strengthen supply chains for battery manufacturing, electric vehicles,
energy storage and clean-energy technologies, in line with the vision of Aatmanirbhar Bharat. Further, the measure will advance the
circular economy and ‘urban mining’, reducing reliance on primary mining, while
supporting environmentally sound recycling of this hazardous material within
the country in accordance with applicable environmental regulations.
The measure complements the
Government's initiatives under the National Critical Mineral Mission (NCMM),
including the ₹1,500 crore Incentive Scheme approved by the Union Cabinet
in September 2025 to develop recycling capacity for the separation and
production of critical minerals from secondary sources such as battery waste
and e-waste. Retaining Black Mass within the country will help ensure that the
recycling capacity being developed under the Scheme has access to adequate
domestic feedstock.
The step is also in keeping with
measures adopted by several major economies to retain critical mineral-bearing
battery waste and Black Mass for domestic processing.