Indian lithium-ion battery recyclers are allegedly dodging the black-mass export ban again

Several Indian battery-recycling companies are preparing to export hundreds of tonnes of black mass by simply changing the product’s HS code, according to information shared by an industry insider. This is a fresh attempt to circumvent India’s prohibition on the export of “black mass” – the critical material-rich powder residue left after shredding lithium-ion batteries.

Mislabelled export of battery black mass has long been flouting both hazardous-waste rules and export-control licences by using incorrect trade codes. Earlier this month, we reported that the Central Board of Indirect Taxes and Customs (CBIC) and the Central Board of Excise and Customs have been formally sensitised about the rampant malpractice of hazardous black mass export. Classified as hazardous waste (HS Code 8549), black mass export requires explicit permission from the Ministry of Environment, Forest & Climate Change (MoEF&CC) and a licence from the Directorate General of Foreign Trade (DGFT).

The latest manoeuvre centres on simply changing the product description. At least four domestic recyclers have re-labelled the material as “non-hazardous goods containing cobalt and nickel” and are ready to ship by/before the weekend. “They are going all out,” the source said. “By this weekend, we will have confirmed news of black mass export under the changed HS code.”

We have learned that the cargo is destined to China with BL (Bill of Landing) switch happening at Singapore.

Nearly 250 MT of black mass has been booked by overseas buyers, and the traders are said to have paid the advance. The cargo has been booked, and they are just waiting for the export to happen. While the quantities of export are locked in, the exact new HS code “is yet to be confirmed”. According to sources, major companies such as Glencore, Ace Green, and Rocklink are involved in trading black mass from India. 

Also Read: Customs take note of mislabeled black mass export from India

Black mass imagery in the cover image – Source: Argonne National Laboratory