Federal Register cites national defense risk from material shortage
The Department of Commerce published a rule in the Federal Register banning exports of lithium-ion battery scrap and tungsten waste for one year, effective later this month. The rule requires certain battery scrap and tungsten waste in the U.S. to be sold domestically.
Exemptions could be granted in certain cases. The ban will not apply if the materials are exported for processing or refining elsewhere and then returned to the U.S.
The restrictions were imposed after President Trump determined that a shortage of critical materials poses a “growing” national defense and security risk, according to the Federal Register notice. The notice said the restrictions are necessary “to ensure an adequate supply of these materials deemed essential to the national defense.”
The rule covers two categories of material. Tungsten is a chemical element used in tank armor, weapons and engine components because of its high strength and heat resistance. China is the world’s largest producer of tungsten, according to the United States Geological Survey, and the element has been included in China’s export restrictions.
Lithium-ion battery scrap, often referred to as black mass, contains lithium and other critical materials such as cobalt, nickel, manganese and graphite. Those materials can be recovered from black mass through recycling processes like chemical processing or smelting.
The ban comes as the U.S. and other Western governments work to secure raw materials that are crucial for defense and other industries but are largely controlled by China, which has restricted exports of some of those materials in recent years. The U.S. has negotiated preferential access to mineral wealth in war-torn countries and is offering financing for critical-materials projects in which foreign entities supply American companies.
In a separate move aimed at curbing reliance on Chinese supply, the Defense Department has ordered contractors to remove Chinese rare earths from their supply chains for magnets by next year.