India’s Ministry of Commerce and Industry has banned the export of 'black mass'—a mineral-rich powder derived from recycled lithium-ion batteries—marking a significant move towards strengthening the nation's electric vehicle (EV) battery supply chain and critical minerals ecosystem.
- Export of lithium-ion battery black mass banned immediately by DGFT
- Measures align with India’s push to develop domestic critical mineral processing
- Battery recycling market projected to double by 2034, reaching $1.3 billion
What happened
The Directorate General of Foreign Trade (DGFT) under India’s Ministry of Commerce and Industry amended the export policy on lithium-ion battery black mass, moving its status from 'Free' to 'Prohibited' effective immediately. This regulation applies to all outbound shipments of this recycled battery waste material, which includes mineral powders rich in lithium, cobalt, and nickel.
Black mass is produced by shredding end-of-life lithium-ion batteries and serves as an important source of critical metals that can be recovered and reused in battery manufacturing. The ban aims to restrict the export of these valuable materials, which were previously sent abroad due to limited domestic processing capacity.
Why it matters
India heavily depends on imports for essential battery metals critical to its growing EV industry. By prohibiting black mass exports, the government is strategically retaining these raw materials within the country to support domestic battery production and recycling initiatives.
This step aligns with India's broader policy objectives, including a ₹1,500 crore incentive scheme launched in September 2025 and a ₹2,814 crore capital expenditure support program to establish lithium and nickel processing plants. Together, these measures aim to reduce import reliance and build a sustainable, resilient EV supply chain.
What to watch next
The key focus going forward will be the expansion of India’s black mass processing and refining infrastructure. Despite the rich resource potential, domestic capacity currently falls short, causing past reliance on exports. Building this capacity is essential to fully capture the economic value of recycled battery materials within India.
Additionally, monitoring the impact of the export ban on market dynamics—including battery recycling industry growth, foreign trade relations, and developments in EV manufacturing—will be critical. The battery recycling market, having reached $603.9 million in 2025, is projected to grow to $1.3 billion by 2034 at a CAGR of 8.65%, making supply chain localization increasingly vital.