Critical Minerals in Battery Scrap Subject to Export Control

[ABS News Service/05.08.2026]

The Commerce Department will require US sellers to reserve all covered black mass and tungsten scrap for domestic buyers beginning August 27, implementing President Trump’s effort to retain recoverable critical minerals for defense and industry.

Under a temporary final rule issued by the Bureau of Industry and Security, US sellers must allocate 100 percent of their monthly sales of covered materials to US persons. The materials generally must remain physically inside the United States unless BIS grants an adjustment or exception.

The order covers shredded lithium-ion battery scrap known as black mass under three Schedule B classifications, as well as tungsten waste and scrap classified under Schedule B code 8101.97.00.00.

Its definition of a sale includes deliveries to corporate affiliates, subsidiaries and divisions under common ownership or control.

Companies may seek BIS authorization to send material abroad for processing or refining if the resulting material will return to the United States. The agency may also grant relief for exceptional hardship, irreparable harm or other circumstances. Filing a request does not suspend the domestic-sales requirement while the application is pending unless BIS provides interim relief.

Customs and Border Protection may detain attempted exports while BIS reviews whether they comply. The rule also permits investigations, information requests and penalties under the Defense Production Act.

The restrictions implement the White House's July 30 determination that recoverable critical minerals and materials are scarce, essential to national defense and vulnerable to supply disruptions. That determination delegated authority to Commerce but did not itself impose specific export controls.

The allocation order is scheduled for publication August 6 and will apply from August 27, 2026, through August 27, 2027, unless BIS adjusts or extends it. Public comments are due November 4.