Critical Minerals and Energy Intelligence

India bans lithium-ion battery black mass exports to keep lithium, cobalt and nickel at home

 

India has banned exports of lithium-ion battery black mass, the shredded battery powder that contains lithium, cobalt, nickel and manganese. The aim is to force recyclers to refine those critical minerals at home rather than ship them to refiners in China and South Korea.

The Directorate General of Foreign Trade changed the export status of black mass from “free” to “prohibited” in Notification No. 49/2026-27 on November 10. The order covers unsorted battery waste and scrap that contains no lead, cadmium or mercury, under HS code 85491400.

It is not a blanket ban on battery exports, applying only to that waste category, so refined metals and salts are not covered by the order — but the timing is deliberate.

On November 4, the Union Cabinet approved a 30% capital subsidy for four processing plants: two lithium plants of at least 30,000 tonnes a year each and two nickel plants of at least 50,000 tonnes each. Support is capped at US$53 million (₹500 crore) per lithium plant and US$96 million (₹900 crore) per nickel plant.

The policy is meant to reduce India’s reliance on supply chains dominated by China, with the government saings the ban will assure feedstock availability for domestic recycling and refining units and improve their capacity utilisation.

Bar chart of India's annual lithium-ion battery black mass capacity and estimated output: shredding capacity nearly 70,000 tonnes (industry association data cited by EVreporter, October 2025); refining capacity about 60,000 tonnes, of which Attero says 15,000 tonnes and Rubamin says 10,000 tonnes; estimated output 5,000-6,000 tonnes (Lohum founder Rajat Verma, February 2024). A footnote notes Indian Express, citing government data in November 2026, put companies' black mass processing input capacity at about 75,500 tonnes a year.

India’s refiners are short of feed

India’s battery shredders can produce nearly 70,000 tonnes of black mass a year, and its refiners can process about 60,000 tonnes, according to industry association data cited by EVreporter in October 2025. Indian Express, citing government data, has since put companies’ input capacity for processing lithium-ion battery black mass at about 75,500 tonnes a year.

However, most plants run well below capacity because they cannot get enough spent batteries. Attero says it can refine up to 15,000 tonnes a year and Rubamin 10,000 tonnes. So, actual output is far lower. In February 2024, Lohum’s founder estimated India’s black mass production at 400 to 500 tonnes a month, or roughly 5,000 to 6,000 tonnes a year. That is less than a tenth of domestic refining capacity, so the ban is less about the tonnes India keeps than about deciding who gets to process them.

Black mass is becoming a controlled commodity

India is not acting alone.

Timeline of lithium-ion battery black mass trade policy: on 1 August 2025 China allowed free imports of black mass that meets its quality standards; on 10 November 2026 India banned exports of unsorted lithium-ion battery black mass; on 9 December 2026 EU hazardous-waste rules start, classifying black mass as hazardous and banning exports to countries outside the OECD, such as China.

This all matters because it highlights how countries that lack mines are starting to treat scrap batteries like ore. China is trying to pull in recycled feed, while Europe, the US and now India are locking it inside their borders. For refiners outside China, that means more competition for a feedstock that used to move freely to whoever paid the most.

Conclusion

The losers are India’s shredders, who make up an estimated +80% of the country’s lithium-ion recycling industry, but are paid better prices by overseas refiners, with some claim Indian refineries paying about 2% less. Industry voices have warned that the shift could hand pricing power to a few domestic refiners.

There is also a gap further down the chain. India has practically no production of cathode active material, according to battery expert Dr SRS Prabaharan, so the cobalt and nickel salts its refiners recover may still have to be sold abroad. Enforcement has been a problem too: in 2025 customs officials were alerted to shredders exporting black mass under the wrong trade codes.

Unless India builds cathode plants that can use the lithium, nickel and cobalt its refiners recover, the ban may just move the export point one step down the value chain, from black mass to metal salts.

Subscribe for Investment Insights. Stay Ahead.

Investment market and industry insights delivered to you in real-time.

Disclaimer

The Oregon Group maintains full editorial control over all content published on this website. While sponsored and advertised placements may be featured, the content remains the sole opinion of The Oregon Group. The author may receive compensation or remuneration for providing content, but all statements and expressions are made independently and are not influenced by sponsors or advertisers. From time to time, The Oregon Group and its directors, officers, partners, employees, authors, or members of their families, as well as persons who are interviewed for articles on this website, may have a long or short position in securities or commodities mentioned and may make purchases and/or sales of those securities or commodities in the open market or otherwise. By accessing and using this website, readers are cautioned to assume that each of the foregoing persons may have a financial interest in all companies and sectors mentioned on this website. Any projections, market outlooks or estimates herein are forward looking statements and are inherently unreliable., and any such statements are based upon certain assumptions and should not be construed to be indicative of the actual events that will occur.  Other events that were not taken into account may occur and may significantly affect the returns or performance of the securities or commodities discussed herein. The information provided herein is based on matters as they exist as of the date of preparation and not as of any future date, and The Oregon Group undertakes no obligation to correct, update or revise the information in this document or to otherwise provide any additional material. The information provided on this website is for informational purposes only and is not, directly or indirectly, an offer, solicitation of an offer and/or a recommendation to buy or sell any security or commodity, and the information provided on this website should not be construed as any advice or an opinion as to the price at which the securities of any company or commodity may trade at any time. The Oregon Group is a publisher of financial information, not an investment advisor.  We do not provide personalized or individualized investment advice or information that is tailored to the needs of any particular recipient, and the information provided on this website is not and should not be construed as personal, financial, investment or professional advice. Readers are cautioned to always do their own research and review of publicly available information and to consult their professional and registered advisors before purchasing or selling any securities or commodities and should not rely on the information contained herein. Neither The Oregon Group nor any of its affiliates accepts any liability whatsoever for any direct or consequential loss howsoever arising, directly or indirectly, from any use of the information contained herein. By using the Site or any affiliated social media account, you are indicating your consent and agreement to this disclaimer and our terms of use. Unauthorized reproduction of this newsletter or its contents by photocopy, facsimile or any other means is illegal and punishable by law.

Share this article

about the author

Picture of The Oregon Group

The Oregon Group

The Oregon Group is an investment research team focused on critical minerals, mining, energy and geopolitics.

Tags

Subscribe Now

Subscribe for in-depth market and industry intelligence you won’t find in the headlines.

Recommended to Read NEXT

GET FREE INVESTMENT INSIGHTS

Investment intelligence and in-depth reports on critical minerals, mining, energy and geopolitics — from capital-markets professionals with boardroom and institutional experience.