India has imposed an immediate ban on the export of waste and scrap from primary cells, primary batteries, and electric accumulators — including lithium-ion battery black mass — in a move aimed at strengthening domestic battery recycling capacity and securing critical mineral supplies. The prohibition, effective from 11 November 2026, was announced by the Directorate General of Foreign Trade (DGFT) under the Commerce Ministry.

What the DGFT Notification Says

The DGFT has amended the export policy for the product classified under ITC (HS) Code 85491400, changing its status from 'Free' to 'Prohibited' with immediate effect and 'until further orders.' The notification states: 'The export policy of Waste and scrap of primary cells, primary batteries and electric accumulators; spent primary cells, spent primary batteries and spent electric accumulators — Unsorted and not containing lead cadmium or mercury (Lithium-Ion Battery Black Mass) under ITC (HS) Code 85491400 is amended from Free to Prohibited with immediate effect, until further orders.'

The amendment was enacted under the Foreign Trade (Development and Regulation) Act, 1992. Transitional arrangements under Para 1.05 of the Foreign Trade Policy 2023 will apply to pending trade commitments.

The Bigger Picture: Critical Minerals Strategy

The export ban is part of a broader government push to retain critical mineral value chains within India. Last week, the Union Cabinet, chaired by Prime Minister Narendra Modi, approved the 'Capex Support Scheme to Promote Critical Mineral Processing' — a ₹2,814 crore outlay over five years (FY 2026-27 to FY 2030-31). The scheme offers a capital subsidy of 30% of eligible investment for setting up domestic processing plants.

Specifically, the scheme funds the establishment of four critical mineral processing plants: two lithium processing facilities (minimum capacity of 30 kt each) and two nickel processing plants (minimum capacity of 50 kt each). Capital support is capped at ₹500 crore per lithium beneficiary and ₹900 crore per nickel beneficiary.

India's Import Dependence on Critical Minerals

At present, India remains heavily reliant on imports for refined intermediates and high-purity materials such as lithium, nickel, and cobalt. This dependence stems from the nascent state of domestic beneficiation and processing infrastructure. By retaining black mass — the intermediate material derived from spent lithium-ion batteries — within its borders, India aims to feed an emerging domestic recycling and refining ecosystem rather than exporting raw processing value to foreign markets.

Notably, this is a downstream complement to India's upstream critical mineral strategy, which also includes bilateral sourcing agreements and mining investments abroad. The two levers — acquiring raw mineral sources externally while processing domestically — form the twin pillars of India's energy transition supply chain policy.

Impact on Industry and What Comes Next

The immediate prohibition will affect exporters currently trading in battery scrap and black mass, a segment that has grown alongside India's expanding electric vehicle (EV) and consumer electronics markets. Industry stakeholders will now need to channel this material to domestic recyclers, who are expected to benefit from improved feedstock availability.

The government's parallel capex scheme is intended to rapidly scale processing capacity so that the redirected material can be absorbed productively. With India's EV adoption accelerating, the volume of end-of-life lithium-ion batteries is projected to rise sharply over the next decade, making the domestic recycling infrastructure increasingly strategic. Policy observers expect further regulatory steps — including battery stewardship norms and extended producer responsibility frameworks — to follow in the coming months.