UPSC Prelims Practice Questions — DGFT prohibits export of Lithium-Ion Battery Black Mass to strengthen domestic recycling and critical mineral recovery

Q1. With reference to the regulation of exports under India's foreign trade framework, consider the following statements: Which of the statements given above is/are correct?

  1. Changing the export policy of an item from 'Free' to 'Prohibited' requires Parliament to amend the Foreign Trade (Development and Regulation) Act, 1992.
  2. Export policy is specified against the ITC(HS) classification, and a notification can single out a particular item falling within a tariff line.
  3. Goods whose export is prohibited by an Order under the Foreign Trade (Development and Regulation) Act, 1992 are treated as prohibited goods for the purposes of the Customs Act, 1962.
  • A. 3 only
  • B. 1 and 2 only
  • C. 1, 2 and 3
  • D. 2 and 3 only

Q2. 'Urban mining' is increasingly discussed as a route to critical-mineral security. Consider the following activities: Which of the above can be described as urban mining?

  1. Recovering cobalt and nickel from the black mass of spent lithium-ion batteries
  2. Recovering copper and gold from discarded mobile phones and circuit boards
  3. Extracting lithium by evaporating brine pumped from beneath salt flats
  4. Recovering lead from spent automobile batteries collected from service stations
  • A. 1 and 2 only
  • B. 1, 2 and 4 only
  • C. 2, 3 and 4 only
  • D. 1, 2, 3 and 4

Q3. With reference to the recovery of critical minerals from spent lithium-ion batteries, consider the following statements: Which of the statements given above is/are correct?

  1. Recycling units that only shred batteries into black mass, without extracting the metals, are not the intended beneficiaries of India's Critical Mineral Recycling incentive scheme.
  2. Black mass contains lithium, cobalt, nickel and manganese already separated from one another, so it can be fed directly into new cathode manufacture.
  3. Because black mass is a waste product, exporting it involves no outflow of recoverable critical minerals from the exporting country.
  • A. 1 only
  • B. 1 and 2 only
  • C. 1 and 3 only
  • D. 2 and 3 only

Q4. Consider the following statements: Which of the following is correct in respect of the above statements?

  1. The prohibition on exporting Lithium-Ion Battery Black Mass is expected to improve the capacity utilisation of India's battery recycling and refining units.
  2. Lithium-Ion Battery Black Mass is hazardous, and its recycling must be carried out in an environmentally sound manner.
  • A. Both Statement-I and Statement-II are correct and Statement-II explains Statement-I
  • B. Both Statement-I and Statement-II are correct, but Statement-II does not explain Statement-I
  • C. Statement-I is correct, but Statement-II is incorrect
  • D. Statement-I is incorrect, but Statement-II is correct

Q5. With reference to the Extended Producer Responsibility (EPR) framework under the Battery Waste Management Rules, 2022, consider the following statements: Which of the statements given above are correct?

  1. Producers are responsible for ensuring the collection and recycling or refurbishment of the waste batteries arising from the batteries they place on the market.
  2. EPR certificates are generated by producers in proportion to their sales and are sold by them to recyclers, who need the certificates to obtain feedstock.
  3. Producers are required to use a minimum share of domestically recycled material in new batteries.
  4. Failure to meet EPR targets attracts environmental compensation based on the polluter pays principle.
  • A. 1 and 2 only
  • B. 2, 3 and 4 only
  • C. 1, 3 and 4 only
  • D. 1, 2, 3 and 4

Q6. Consider the following facts: India's battery recycling and refining capacity has grown considerably but remains under-utilised; Black Mass was being exported while some domestic recyclers imported similar material; the Government has now prohibited the export of Black Mass. Which of the following inferences can validly be drawn from the above facts?

  1. Before the prohibition, the output of at least some domestic recyclers was constrained by the availability of input rather than by installed processing capacity.
  2. The prohibition will by itself eliminate India's import dependence for lithium, cobalt and nickel.
  3. Domestic recyclers were technologically incapable of processing Black Mass before the prohibition.
  4. Sellers of Black Mass in India now face a narrower set of potential buyers than before.
  • A. 2 and 3 only
  • B. 1, 2 and 4 only
  • C. 3 and 4 only
  • D. 1 and 4 only

Q7. Consider the following statements: Which of the following is correct in respect of the above statements?

  1. A WTO member can be in breach of its GATT obligations by banning the export of a good even if it levies no export duty on that good.
  2. Under GATT, an export prohibition is permissible without further conditions so long as it applies equally to exports bound for all WTO members.
  • A. Both Statement-I and Statement-II are correct and Statement-II explains Statement-I
  • B. Both Statement-I and Statement-II are correct, but Statement-II does not explain Statement-I
  • C. Statement-I is correct, but Statement-II is incorrect
  • D. Statement-I is incorrect, but Statement-II is correct