NewsCommodities & ForexU.S. Moves to Keep Tungsten Scrap and Battery Metals at Home

U.S. Moves to Keep Tungsten Scrap and Battery Metals at Home

Author: OilPrice.com·

Key Takeaways

  • The Commerce Department is proposing a one-year temporary rule that would require licenses for exports of black mass and tungsten waste and scrap.
  • The action follows a presidential determination under Section 101 of the Defense Production Act that recoverable critical minerals are scarce and vital to national defense.
  • Black mass is a recycled lithium-ion battery material, and the rule would keep it in the domestic supply chain unless an exporter secures a license.
  • Tungsten prices have increased by more than 500% over the past year amid Chinese export restrictions, tight supply and strong military demand.
  • Development of what the U.S. says is its largest tungsten deposit in Nevada is facing opposition from NASA over concerns about satellite signal tracking.
U.S. Moves to Keep Tungsten Scrap and Battery Metals at Home

The Bureau of Industry and Security at the U.S. Department of Commerce is moving to restrict exports of black mass and tungsten waste and scrap for one year without a license in an effort to secure domestic supplies of critical metals.

In a request for comments on the temporary final rule, the Commerce Department said the move follows a Presidential Determination issued last week under Section 101 of the Defense Production Act (DPA). The determination states that recoverable critical minerals and materials (CMMs) are scarce and are critical materials essential to national defense. Based on those findings, the president authorized the Secretary of Commerce to use delegated authority to take appropriate action under Section 101 of the DPA.

"This temporary rule is necessary to immediately secure the supply of certain recoverable CMMs to ensure an adequate supply of these materials deemed essential to the national defense, as required by the President under DPA Determination on Recoverable CMMs," the Department of Commerce said.

Under the temporary rule, black mass — shredded metal derived from recycled lithium-ion batteries — and tungsten waste and scrap would be sold only domestically unless an exporter applies for and obtains a license.

The measure is part of the U.S. administration’s broader effort to secure critical mineral supplies vital to national defense and the military, at a time of fragmented global trade and Chinese export controls that also apply to tungsten. The focus on scrap and recycled battery material also reflects how the U.S. is trying to keep more recoverable inputs in the domestic supply chain, rather than sending them abroad before they can be processed into usable metals.

Tungsten prices have risen by more than 500% over the past year amid Chinese export restrictions, tight supply, and heavy global military spending.

The U.S. has also recently identified what it says is its largest tungsten deposit, but development is facing an obstacle from NASA, which is opposing further work at the site.

The company behind the discovery, 3 Proton Lithium, drilled in a remote section of the Great Basin Desert in Nevada. According to NASA, much of the area is used to track satellite signals sent to Earth from space. The agency says mining activity there would compromise that tracking and has already blocked drilling in the area where it monitors satellite signals.