US black mass export restrictions could bolster domestic refiners

On 30 July the Trump administration issued a memorandum to secure the supply of recoverable Critical Minerals and Materials (CMMs) by controlling exports under Section 101 of the Defense Production Act. Included within these controls are black mass and used batteries. Following this the Department of Commerce’s Bureau of Industry and Security (BIS) issued a temporary rule to restrict exports of black mass and tungsten scrap without a license on 4 August, which it is now seeking feedback on. According to the summary “U.S. persons engaged in the sale of black mass and tungsten waste and scrap must allocate 100 percent of monthly sales to U.S. persons, unless an adjustment or exception is obtained in advance from BIS.” After publication on 6 August, there are 21 days permitted for feedback before official implementation on 27 August with an expiration date of 17 September 2027. “A ban on the export of black mass should redirect feedstock towards US recyclers,” said Frederick Bloomfield, a senior black mass pricing analyst at Benchmark. “The key question is whether the policy will accelerate the buildout of US black mass refining capacity and mitigate critical mineral leakage, or whether these rules can be circumvented.”