New Delhi, India – India has officially banned the export of lithium-ion battery scrap, commonly referred to as black mass, a strategic move aimed at fortifying the domestic recovery of crucial minerals such such as lithium, cobalt, nickel, and manganese.
The Directorate General of Foreign Trade (DGFT) issued a notification on Tuesday, changing the export status of black mass from 'Free' to 'Prohibited'. This policy shift comes as domestic recyclers grapple with severe feedstock shortages, despite substantial investments in processing infrastructure across the country.
Why the Ban on Black Mass Exports?
Black mass is a material generated when end-of-life lithium-ion batteries from electric vehicles (EVs), consumer electronics, and energy storage systems are dismantled and shredded. It contains recoverable quantities of the critical minerals essential for manufacturing new batteries.
Industry estimates reveal a significant disparity between India's processing capacity and its domestic generation of black mass. While the nation has established over 100,000 metric tonnes (MT) of annual battery shredding capacity and more than 60,000 MT of refining capacity, domestic black mass generation remains below 15,000 MT per year.
This imbalance has led to local processors struggling to acquire sufficient raw materials, hindering their ability to recover valuable minerals within India. The export of black mass further exacerbates this issue, diverting crucial resources that could otherwise feed the burgeoning domestic battery recycling ecosystem.
Industry Applauds the Move
The Material Recycling Association of India (MRAI) has lauded the government's decision, emphasizing its potential to conserve critical mineral resources and promote their recovery, recycling, and processing within national borders.
"We appreciate the Government's efforts to conserve and secure India's precious critical mineral resources within the country, promoting their domestic recovery, recycling and processing," an MRAI spokesperson stated.
The industry body further noted that this measure aligns with the government's broader objective of retaining battery recycling resources in India rather than shipping them overseas for processing. This is seen as a vital step towards developing a robust domestic critical minerals value chain, crucial for India's energy transition and self-reliance in battery technology.