Black mass recyclers want the government to adopt a calibrated, phased approach for imposing strategic export restrictions, suggesting that an abrupt halt might strain a sector that is still building domestic linkages.
Black mass, the shredded intermediate material derived from recycling lithium-ion batteries, contains critical minerals such as lithium, cobalt, nickel, manganese, tin, graphite and silicon. These materials are essential for advanced battery manufacturing, used in electric vehicles (EVs), renewable energy storage systems and other clean technology applications.
Last November, the government deferred all export-permission applications for black mass, effectively signalling a near-term halt, in a move aimed at building a resilient domestic ecosystem for battery recycling and refining. India’s black mass recycling market was valued at $1,565 million in 2024 and is projected to grow at a 17.4% CAGR to $6,451 million by 2033, said market research firm Grand View Research.
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Bridging the Gap
While industry participants acknowledge the government’s intent to preserve strategic feedstock within the country, they argue that the domestic ecosystem is not yet equipped to absorb the full volume generated.
“Though the intent to retain strategic feedstock domestically is well-placed, the transition will require calibrated sequencing across refining capacity, pricing parity and the formalisation of black mass standards,” said Gaurav Dolwani, CEO, LICO Materials. Although capacities are being developed under government initiatives such as the Production Linked Incentive (PLI) scheme for Advanced Chemistry Cell (ACC) manufacturing, most facilities are not yet operational.
As a result, processors say recovered materials such as lithium, cobalt, nickel, and manganese remain underutilised, locking up working capital and straining recycling operations.
Anupam Kumar, CEO, MiniMines Cleantech Solutions, said, “India’s National Critical Mineral Policy 2025 provides the right framework to enable this transition by supporting efficiency improvements and the development of more advanced refining technologies”. As this shift progresses, he expects significant capital to begin flowing into the domestic battery-recycling and critical-minerals sectors.
Path to a Formal Ecosystem
Another key concern flagged by industry stakeholders is the lack of standardization and classification of black mass. Since its composition varies depending on the chemistry of batteries being recycled, recyclers say a clear regulatory framework and defined assay standards are essential to enable transparency, pricing alignment and trade compliance.
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“India’s battery recycling sector is ready to contribute to a strong domestic value chain, but policy transitions must reflect the realities of current infrastructure. A phased and coordinated approach will ensure recyclers remain sustainable while the broader ecosystem for refining, materials processing and cell manufacturing continues to develop.” Said Akhilesh Bagaria, NavPrakriti Green Energies.
Stakeholders have also called for black mass to be recognised as a secondary resource rather than classified as waste, given its role in recovering critical minerals central to India’s energy transition and net-zero ambitions.
TOPICSexportThis article was first uploaded on April five, twenty twenty-six, at thirty-six minutes past five in the evening.