US critical minerals policy shifts, impacting tungsten and battery waste exports, will reshape domestic recycling markets and supply chains.
The Trump administration recently moved to block exports of tungsten and battery waste, aiming to onshore critical mineral supply chains and reduce reliance on foreign sources.
This directive immediately impacts recycling operations handling these materials, forcing a re-evaluation of current export-dependent business models and potentially creating new domestic processing opportunities for recyclers and refiners.
Domestic Sourcing Mandate Reshapes Tungsten and Battery Recycling
The policy stems from Executive Order 13817, signed in 2017, which identified 35 critical minerals vital to U.S. economic and national security. Tungsten, a key component in defense, aerospace, and electronics, and various battery metals, including lithium, cobalt, and nickel, are on this list. Historically, a significant portion of these materials recovered in the U.S. has been exported for processing due to limited domestic refining capacity.
- Executive Order 13817 identified 35 critical minerals.
- The U.S. imports over 80% of its tungsten.
- Battery recycling capacity for lithium-ion cells remains nascent domestically.
- The Department of Commerce will enforce new export restrictions.
- This move targets reducing China's dominance in critical mineral processing.
Compliance Timelines Tighten for US E-Waste Handlers
E-waste and battery recyclers must now navigate stricter export controls, particularly for end-of-life products containing tungsten carbide tools or lithium-ion batteries. Operations that previously relied on selling mixed battery scrap or tungsten-rich materials to overseas processors will face immediate disruption. This policy incentivizes significant domestic investment in advanced sorting, extraction, and refining technologies, pushing companies to develop U.S.-based circular economy solutions for these critical materials. Early adopters in domestic processing stand to gain substantial market share.
What This Means for Recyclers
Recyclers must audit their material streams for critical minerals and assess current export dependencies. Expect increased demand for domestic processing partnerships and potential government incentives for U.S.-based refining infrastructure. Operators should monitor specific guidance from the Department of Commerce regarding regulated materials and permissible export destinations.
