U.S. orders black mass, tungsten scrap kept home

The United States will block most exports of spent lithium-ion batteries, or black mass, and tungsten scrap for one year, forcing sellers to reserve the recycled mineral feedstock exclusively for domestic buyers.

The Commerce Department’s Bureau of Industry and Security is to publish the nationwide order on Thursday. It takes effect Aug. 27 and runs for 12 months, requiring sellers to direct all covered monthly sales to U.S.-based buyers unless the bureau grants an exemption.

“America’s inadequate supply of CMMs [critical minerals and materials] poses an increasing risk to our national defense and security,” the department said in a temporary final rule.

The department skipped the usual advance notice and comment process, citing urgent and compelling circumstances under the Defense Production Act. The move follows a July 30 presidential finding that recoverable critical minerals are scarce, essential to national defence and exposed to supply disruptions.

The order could secure more feedstock for U.S. recyclers, but the country may lack enough plants to process it. Tungco CEO Cliff Nance opposed a tungsten scrap ban before the rule appeared, arguing that domestic refiners could not absorb all the material. Battery-market analysts have raised similar concerns about a near-term surplus of black mass as U.S. processing capacity catches up.

Domestic lockup

The order marks a shift in U.S. policy from funding mines and processing plants to controlling recycled feedstock.

It could also give Washington a template to restrict other recoverable critical minerals.

Black mass consists of shredded lithium-ion battery scrap containing cathode, anode or other cell material. It can hold lithium, cobalt, nickel, manganese, graphite, copper, iron and aluminum.

The order covers black mass sold under three U.S. customs codes for battery and electrical scrap, but only when the material meets the government’s definition. It separately covers tungsten waste and scrap under a fourth code.

The sales restriction reaches beyond conventional transactions. It includes deliveries to affiliates and subsidiaries, as well as transfers between branches or divisions under common ownership.

Sellers must continue filling priority-rated defence orders ahead of unrated business under the Defense Priorities and Allocations System.

Wider net

The rule allows exemptions where compliance would cause hardship or material must be processed abroad and returned to the U.S. Customs may hold suspect shipments and breaches can draw penalties.

The bureau reserves the right to later extend the order to other materials after a public comment period ending Nov. 4.