Key facts
- The U.S. Department of Commerce has implemented a one-year restriction on exporting tungsten waste and scrap, and black mass from recycled lithium-ion batteries.
- Exports will require a license to ensure domestic supply of these critical metals.
- The action is based on a Presidential Determination identifying these materials as essential for national defense.
- This measure is part of a broader U.S. strategy to secure critical mineral supplies amidst global trade challenges and Chinese export controls.
- Tungsten prices have seen a significant increase over the past year due to supply constraints and export restrictions.
The U.S. Department of Commerce is implementing a one-year restriction on the export of tungsten waste and scrap, as well as black mass derived from recycled lithium-ion batteries. This temporary final rule, issued by the Bureau of Industry and Security, requires exporters to obtain a license to ensure a secure domestic supply of these critical minerals, deemed essential for national defense.
The decision follows a recent Presidential Determination under the Defense Production Act (DPA), which identified recoverable critical minerals and materials (CMMs) as scarce and vital for national security. The President delegated authority to the Secretary of Commerce to take appropriate actions.
This measure is part of the U.S. Administration's strategy to bolster its supply of critical minerals, particularly in the context of fragmented global trade and existing Chinese export controls on similar materials, including tungsten. Tungsten prices have experienced a dramatic surge of over 500% in the past year, driven by these Chinese restrictions, tight global supply, and increased military spending worldwide.
Meanwhile, the U.S. faces domestic challenges in developing its own critical mineral resources. The country's largest tungsten deposit discovery in Nevada by 3 Proton Lithium is encountering opposition from NASA. The space agency argues that mining activities in the area would compromise its crucial satellite tracking operations, having already blocked previous drilling attempts.