India’s Ministry of Forest Environment and Climate Change has classified “black mass” as hazardous waste and put restrictions on its export. The move marks another pivotal aspect in India’s strategy to scale up domestic battery recycling infrastructure and strengthen material recovery mechanisms – both of which are a strategic imperative in reducing import dependency for raw materials used to make batteries and thus ensure long-term battery security.
Black mass, the residual powder-like substance obtained from shredding discarded lithium-ion batteries and consumer electronics, contains critical minerals such as lithium compounds (nearly 5-10 percent), cobalt (5-20 percent), nickel (5-15 percent), as well as varying amounts of manganese and rare earth elements. These minerals are essential for manufacturing lithium-ion batteries used in electric vehicles, electronic devices, and grid storage technologies.
As the global rush for green energy transition intensifies, with EVs and battery technologies at the forefront, India finds itself at a critical crossroads. India’s lithium-ion battery demand is projected to increase at an exponential rate – from 15 gigawatt-hours (GWh) in 2025 to 54 GWh by 2027 and 127 GWh by 2030 – driven by rapid adoption of EVs and an ambitious push toward the decarbonization of electricity grids.
Yet, India lacks any significant domestic supply of the raw materials required for lithium-ion battery manufacturing. The country remains 100 percent dependent on imports for materials such as lithium (the core component of lithium-ion batteries, as the name implies) as well as cobalt and nickel (both used in batteries, mainly as cathode material). In addition, over 60 percent of India’s graphite (used in battery anodes) comes from foreign sources.
Compounding the problem is the fact that a large sum of these imports come from China. China accounts for nearly 75-85 percent of India’s total lithium-ion batteries import share alone. Additionally, India is also highly dependent on China for machinery and equipment important for battery manufacturing.
China’s stronghold on the global value chain for lithium-ion batteries – Chinese companies account for nearly 85 percent of battery cell production and 53 percent of battery material global exports – has become even more precarious with its recent ban on exports of rare-earth magnets. Along with China’s previous graphite export squeeze in 2023, it’s a stark reminder of the weaponization of resource dependencies.
Despite all the alarm bells, during fiscal year 2024, India’s imports of critical minerals has only grown. Due to continued domestic demand, imports surged dramatically: by 921 percent for lithium, 137 percent for nickel, and 85 percent for cobalt. More concerning is that the sourcing of many of these critical minerals is done through indirect re-export channels. This often involves importing from intermediaries rather than original producers or processors, creating a complex, third-layered supply chain dependency that exposes the country to strategic vulnerability and geopolitical risks.
Without secure access to these essential mineral inputs, India’s EV and grid decarbonization push remains materially hollow.
India’s domestic EV market has grown rapidly over the years and is poised to play a bigger role in years to come. The government has provided active support through the National Electric Mobility Mission Plan and the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles schemes. By 2030, India is targeting EV penetration of 30 percent for private cars and 70 percent in commercial vehicles. It plans to increase production of EVs to 80 million by the same year.
At the same time, the Indian government has made massive investments toward the installation of battery storage technologies – aligned with India’s climate commitments under the “Panchamrit targets.” India’s domestic lithium-ion battery manufacturing is slowly gaining traction in recent years with the introduction of the Production Linked Initiative schemes and large-scale pilot cell manufacturing units.
But achieving these ambitions requires not only market incentives but material security. The backbone of this transformation, access to the necessary raw minerals, remains fragile. These goals cannot be realized if the battery manufacturing supply chain is dependent on volatile imports.
This is where “black mass” comes into focus. India already generates considerable volumes of battery waste. India ranks as the third largest e-waste producer globally, generating approximately 3.2 million tons of waste per year. Out of this total, a substantial 70,000 metric tons specifically originates from lithium-ion batteries. Black mass makes up nearly 40-50 percent of the total weight of a lithium-ion battery – that means 1 ton of discarded lithium-ion batteries could yield 300-500 kg of black mass.
Reports suggested that the country has an annual battery recycling capacity of over 60,000 tonnes, from which nearly 30,000 tonnes of black mass could be produced. This highlights a valuable option for India to establish a circular economy, where efficient recycling can complement domestic manufacturing, reduce import dependency, enhance supply chain resilience, and ensure sustainable growth.
This is why India’s new policy on black mass is an utmost necessity and an enabling step. Classifying it as hazardous waste enforces stricter ESG norms, which compel stakeholders to undertake better collection, storage, and processing practices. Additionally, while curbing exports may, in the short term, disrupt the foreign-dependent businesses, it will also create a strategic pool of black mass for the battery industry. This in turn could help to promote the emergence of a circular economy over the long term.
Yet the sector is still in its infancy. The 2022 battery waste management rules mandated a set of guidelines and targeted 100 percent collection and recycling for end-of-life batteries within a seven-year window. However, as of now, India only manages to recycle a mere 1 percent of end-of-life lithium-ion batteries into usable materials, highlighting the significant gap between policy goals and actual outcomes.
Furthermore, high operational costs exacerbated by an 18 percent GST on battery scrap have made formal recycling unviable. As a consequence, approximately 90 percent of India’s battery waste is managed by the informal sector, operating outside the nation’s waste regulations – with manual dismantling, unsafe storage, and unscientific refining methods.
Even among certified recyclers, systemic issues like infrastructural gaps, lack of awareness, and technological limitations hinder safe and efficient recovery of recycled materials. Others mislabel themselves as refiners and, in some instances, illegally export materials under alternative labels such as cobalt or nickel. This regulatory gap undermines the purpose of the black mass policy.
If left unchecked, India risks losing out on a major strategic opportunity. The country is expected to generate nearly 128 GWh of discarded lithium-ion batteries, representing a potential $3.5 billion black mass recovery market by 2030.
In this context, a dedicated three-pronged approach becomes essential. First, from the legal and regulation aspect, India should implement a comprehensive regulatory framework with stringent oversight and enforcements. This includes strengthening the existing battery waste management rules, reducing the GST to a more viable 5 percent bracket, and integrating artificial intelligence and internet of things-enabled digital waste tracking systems to ensure more transparency, efficiency, and accountability in the process.
Second, India should ramp up its domestic refining and material recovery capabilities by providing incentives for adopting advanced recycling technologies such as hydrometallurgical and pyrometallurgical processes – capable of extracting 90 to 95 percent of critical minerals from black mass. These technologies should be standardized, scaled up, and linked to rigorous quality benchmarks.
And finally India must use the BRICS platform, Global Battery Alliance, and strategic collaboration with its partner countries such as Australia, Japan, and South Korea to forge partnerships on raw material security, and attract and share innovative solutions and cutting-edge technologies.
India’s black mass policy must be seen as a springboard. If used wisely, it offers a rare convergence of environmental sustainability, technological innovation, and strategic autonomy. The opportunity is right before our eyes – what’s needed is urgency, coordination, and strategic clarity to transform e-waste into sovereign wealth and a strategic asset to build battery self-reliance in the coming years.