Can India Expand Battery Recycling Capacity After Black Mass Ban?

India's battery recycling capacity is coming into focus after the government prohibited lithium-ion battery black mass exports, aiming to retain valuable minerals for domestic processing.

The Directorate General of Foreign Trade (DGFT), through its November 10 notification, changed the export status of specified battery waste from 'Free' to 'Prohibited' with immediate effect.

The Commerce Ministry said the measure is expected to "assure feedstock availability for domestic recycling and refining units" and improve their capacity utilization.

The decision seeks to strengthen India's critical mineral recovery ecosystem and support its battery manufacturing supply chain.

Key Highlights

• DGFT prohibits exports of specified lithium-ion battery black mass under ITC (HS) Code 85491400.
• India has 57 registered lithium-ion battery recyclers with combined annual processing capacity of 5.17 lakh metric tons.
• Black mass-specific input capacity is estimated at 75,500 tons annually.
• The export restriction aims to improve domestic feedstock availability and critical mineral recovery.

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Why Has India Restricted Lithium-Ion Battery Black Mass Exports?

Black mass is a powder-like material generated by shredding used lithium-ion batteries and manufacturing scrap.

It contains recoverable minerals, including lithium, cobalt, nickel and manganese, which can be extracted through further chemical processing. The export restriction aims to retain this material within India rather than allowing mineral-rich battery waste to be processed overseas.

The government expects the measure to encourage investment in domestic recycling and refining facilities, while supporting battery manufacturing, electric vehicles and energy storage.

How Much Battery Recycling Capacity Does India Have?

According to government data, 57 lithium-ion battery recyclers are registered on the Central Pollution Control Board's Battery Waste Extended Producer Responsibility portal.

Their combined annual processing capacity stands at 5.17 lakh metric tons. However, the estimated input capacity specifically for processing lithium-ion battery black mass is around 75,500 metric tons annually.

Can Domestic Recyclers Recover More Critical Minerals?

The export ban could improve feedstock availability, but expanding battery recycling capacity will also require investment in downstream refining technology.

The restriction complements the Rs 1,500 crore Incentive Scheme for Promotion of Critical Mineral Recycling, approved in September 2025 under the National Critical Mineral Mission.

Its effectiveness will depend on whether Indian recyclers can expand processing and refining capabilities to convert retained black mass into usable battery materials.