Indian Government Imposes Ban on Export of Battery Scrap, Including Lithium-Ion Black Mass
The Indian government has banned the export of battery scrap to enhance domestic recycling and ensure mineral supply.
New Delhi, November 11 (Daily Kiran) : The Indian government has announced an immediate ban on the export of battery scrap, including lithium-ion black mass. This decision affects primary cells, primary batteries, and electric accumulator waste. The Directorate General of Foreign Trade (DGFT), operating under the Ministry of Commerce, issued a notification detailing the changes in export policy.
According to the notification, the export policy for items classified under ITC (HS) code 85491400 has been altered. Previously categorized as ‘free,’ the export of unprocessed primary cells, primary batteries, and electric accumulators—those free of lead, cadmium, or mercury—has now been designated as ‘restricted’ until further notice.
This amendment is made under the Foreign Trade (Development and Regulation) Act of 1992. Interim provisions from the Foreign Trade Policy 2023 will apply to this notification.
The government’s aim is to bolster domestic battery recycling capabilities and secure the supply of critical minerals. Last week, Prime Minister Narendra Modi led a cabinet meeting that approved a capital expenditure assistance scheme worth ₹2,814 crores to promote the processing of essential minerals. This funding is set to be utilized over five years.
The capital expenditure assistance scheme is designed to develop domestic processing capacities, enhance value addition within the country, reduce reliance on imports, and establish a complete value chain. The initiative will run from fiscal year 2026-27 to 2030-31 and will provide a 30% capital subsidy on eligible investments for establishing four processing plants. These include two lithium processing plants, each with a minimum capacity of 30,000 tons, and two nickel processing plants, each with a minimum capacity of 50,000 tons.
An official statement indicated that the maximum capital support is capped at ₹500 crores for each lithium beneficiary and ₹900 crores for each nickel beneficiary. Currently, India relies heavily on imports of refined intermediate products and high-purity materials due to the nascent state of its domestic infrastructure for processing critical minerals, including lithium, nickel, and cobalt.
