Tungsten Scrap Export Restrictions: What You Need to Know

US Commerce Department Restricts Exports of Black Mass and Tungsten Scrap

The U.S. Department of Commerce has issued a temporary final rule. It requires entities to allocate 100 percent of monthly black mass and tungsten scrap sales to domestic buyers. An exception is granted only if approved. Published by the Bureau of Industry and Security, this move secures critical mineral supply chains. These chains are essential for national defense and advanced manufacturing.

Domestic Supply Mandate and Defense Priorities

The rule follows recent presidential directives under the Defense Production Act of 1950. Processors of shredded lithium-ion battery scrap and tungsten waste must prioritize domestic supply channels through August 2027. This regulation curtails outbound shipments of valuable secondary materials to foreign competitors. It ensures domestic recycling streams feed emerging U.S. refining capacity.

Industry Reactions and Recycling Concerns

Industry reaction to the new export restrictions is polarized. Domestic recyclers and emerging refiners welcome the allocation order. They note it provides necessary feedstock visibility to secure financing for new facilities. Conversely, trade associations caution that domestic refining capacity cannot absorb current collection volumes. They warn that export restrictions could disrupt trade flows and lower scrap prices.

Market Impact

○ Impacted Metals: Tungsten scrap, lithium-ion battery black mass, nickel scrap, cobalt scrap, lithium scrap

○ Direction: Bullish

○ Time Horizon: 2026–2027

○ Affected Industries: Battery recycling, tungsten processing, aerospace, defense, electric vehicles, mining and refining

○ Related Price Reports: Tungsten Weekly Price Report, Cobalt Alloy Weekly Price Report, Nickel Alloy Weekly Price Report

○ Watch Item: Monitor BIS implementation of the exception process and potential retaliatory trade measures from affected international destinations.

SuperMetalPrice Commentary:
The restriction marks a decisive shift toward resource nationalism in critical battery and refractory materials. While domestic refiners gain guaranteed feedstock access, the immediate bottleneck in U.S. hydrometallurgical capacity risks localized oversupply and lower scrap collection rates.