The Indian government has banned the export of battery waste, scrap, and lithium-ion black mass with immediate effect.
The Directorate General of Foreign Trade issued a notification announcing this major policy amendment on Wednesday.
Officials altered the export status of unsorted battery scrap under ITC Code 85491400 from free to strictly prohibited.
The government executed this policy revision under powers granted by the Foreign Trade Development and Regulation Act of 1992.
Standard transitional arrangements under the Foreign Trade Policy 2023 will apply to all pending shipments affected by this decree.
Policymakers enacted this prohibition to strengthen domestic battery recycling capabilities and secure reliable supplies of critical minerals.
This export restriction follows a major Union Cabinet decision chaired by Prime Minister Narendra Modi last week.
The Cabinet approved a capital expenditure support scheme worth 2,814 crore rupees over five upcoming fiscal years.
This critical mineral processing scheme aims to establish robust domestic processing facilities and significantly reduce import reliance.
The strategic initiative will run continuously from fiscal year 2026-27 through fiscal year 2030-31 across India.
Under the scheme, the government offers a thirty percent capital subsidy for setting up four major processing units.
The plan includes funding two lithium processing facilities with a minimum production capacity of thirty kilotonnes each.
It also supports two nickel processing plants with a minimum capacity of fifty kilotonnes each nationwide.
The official policy caps maximum financial assistance at 500 crore rupees for each eligible lithium processing unit.
Meanwhile, nickel processing beneficiaries can receive capital support up to 900 crore rupees per individual project.
India currently depends heavily on foreign imports for refined mineral intermediates and high-purity industrial inputs.
Domestic infrastructure for processing critical minerals like lithium, nickel, and cobalt remains in a nascent development stage.
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