India Bans Export of Lithium-Ion Battery Black Mass

Why black mass matters

Black mass is produced by shredding end-of-life lithium-ion batteries. It is rich in lithium, cobalt and nickel, which can be recovered and reused in new batteries at lower cost than mining fresh reserves. Because India depends on imports for these raw materials, the government sees black mass as a strategic resource that allows local sourcing.

The ban fits a wider push to cut reliance on imported critical minerals. In September 2025, the government approved incentives worth ₹1,500 crore to build domestic recycling capacity. Earlier this week it added the Capex Support Scheme to Promote Critical Mineral Processing, with an outlay of ₹2,814 crore to set up two plants each for lithium and nickel processing.

The capacity gap

According to the Observer Research Foundation, India can recycle more than 60,000 tonnes of batteries a year, yielding around 30,000 tonnes of black mass. Limited processing capacity, however, means the material has typically been shipped abroad.

The restriction could keep those materials inside the country, but India still has to build up its black mass extraction and refining capabilities to capture the full economic value. The domestic battery recycling market reached $603.9 million in 2025 and is projected to hit $1.3 billion by 2034, a CAGR of 8.65%, as battery manufacturing scales up.