US Bans Exports of Key Metals to Bolster Defense Supply Chain

The United States is implementing a one-year ban on exporting certain recycled critical minerals. This move aims to strengthen the U.S. defense supply chain and reduce reliance on China for essential raw materials. The ban specifically targets tungsten scrap and "black matter," a byproduct of battery recycling.

“

The U.S. has no tungsten mines currently, but has some scrap processing capacity; however, this capacity is insufficient to reprocess all scrap into finished products.

U.S. companies had urged the White House to prohibit tungsten scrap exports. They feared that Chinese buyers would overpay for these materials, only to have them shipped back to China. China currently dominates the production of many critical metals vital for defense, technology, and energy sectors. This dominance has allowed China to leverage its control in trade disputes with the U.S., highlighting the risks of Western dependence on single suppliers.

“

Some U.S. companies have been urging the White House to ban the export of tungsten scrap, as they worry that Chinese buyers will pay excessively high prices for tungsten scrap, which will then be shipped back to China.

In response, nations led by the U.S. are accelerating efforts to develop new mining sources and enhance domestic recycling capabilities. President Trump had previously directed the Commerce Department to develop export restrictions due to insufficient metal supplies posing a growing risk to national security. The new regulations stipulate that sellers of black powder and tungsten scrap within the U.S. must primarily sell to domestic buyers unless granted a waiver.

“

China's dominance in the production of numerous critical metals, essential for defense, technology, and energy industries, has allowed it to use this control advantage to restrict other countries' access to these materials in its tit-for-tat trade war with the United States, highlighting the risks of Western dependence on a single supplier.

The global arms race, conflicts in Iran and Ukraine, and China's own export restrictions have led to a growing shortage and price surge for tungsten, a key component in munitions. Data shows an increase in U.S. tungsten scrap exports to recycling centers in the Philippines, Taiwan, Vietnam, and South Korea this year. These "black matter" materials are rich in battery metals like lithium, cobalt, nickel, manganese, and graphite. However, the U.S. has limited domestic processing capacity for these substances, with most black matter being recycled in Asia.

“

The global arms race, the wars in Iran and Ukraine, and China's export restrictions have led to a growing shortage of tungsten, used in the manufacture of munitions, and its price has soared this year.