The U.S. Department of Commerce’s Bureau of Industry and Security has issued a Temporary Final Rule placing sweeping new restrictions on the export of black mass and tungsten waste and scrap.
The rule requires U.S. persons engaged in the sale of covered materials to allocate 100 percent of their monthly sales to U.S. persons unless BIS grants an adjustment or exception.
Black mass is defined under the rule as shredded lithium-ion battery scrap containing cathode material, anode material, or other residual battery cell materials.
The recoverable critical minerals found within black mass include lithium, nickel, cobalt, manganese, and graphite, all of which are considered essential to U.S. defense and economic security.
Covered materials must remain physically located within the United States unless otherwise authorised by BIS, adding a further layer of restriction beyond the domestic sales requirement.
The rule is being implemented through the Defense Priorities and Allocations System under the Defense Production Act, following a July 30 Presidential Determination on Recoverable Critical Minerals and Materials.
BIS defined “sale” to include “deliveries to affiliates and subsidiaries of a person” and transfers “from one branch, division, or section of a single entity to another branch, division, or section under common ownership or control.”
That broad definition means recyclers transporting black mass to their own foreign-owned processing operations face the same 100 percent domestic allocation requirement as companies conducting third-party export sales.
Companies may request adjustments or exceptions on a rolling basis, including for material sent abroad for processing or refining and then returned to the United States.
BIS has said it intends to respond to such requests within 14 days and can grant interim temporary licences, though Customs and Border Protection may detain shipments pending review.
The restrictions are scheduled to take effect on August 27 following publication in the Federal Register, with the rule set to remain in force for one year unless adjusted or extended.
The department bypassed the standard advance notice and public comment process, citing urgent and compelling circumstances under the Defense Production Act.
The move reflects growing concern in Washington that recoverable critical minerals are scarce, essential to national defence, and exposed to supply disruptions that could threaten domestic manufacturing and security.