U.S. to Ban Exports of Recycled Battery Metals and Tungsten

Dow Jones
Aug 05

The U.S. is banning the export of lithium-ion battery and tungsten waste in an effort to curb its reliance on China and secure more of the critical materials its defense industry needs.

Beginning later this month, certain battery scrap and tungsten waste in the U.S. must be sold domestically, according to a Department of Commerce rule published on the Federal Register. The ban will be in effect for a year.

The move comes as the U.S. and other Western governments race to secure the raw materials that are crucial for defense and other industries, but are largely controlled by China. Beijing began throttling exports of some of those materials in recent years, raising global alarm.

Tungsten is a chemical element that is used in tank armor, weapons and engine components because of its high strength and heat resistance. China is the world's largest producer of tungsten, according to the United States Geological Survey, and has included the element in its export restrictions.

Lithium-ion battery scrap -- often referred to as black mass -- contains lithium and other critical materials such as cobalt, nickel, manganese and graphite. Those materials can be recovered from black mass through recycling processes such as chemical processing or smelting.

The Federal Register notice said President Trump had determined that a shortage of critical materials posed a growing national defense and security risk. The new restrictions are necessary "to ensure an adequate supply of these materials deemed essential to the national defense," the notice said.

Exemptions could be granted in certain cases, including if the materials are exported for processing or refining elsewhere and then returned to the U.S.

The U.S. is already spending heavily in a bid to kick-start non-Chinese supply chains for critical raw materials. It has negotiated preferential access to mineral wealth in war-torn countries, and is offering financing for critical-materials projects in which foreign entities supply American companies.

In another move aimed at curbing U.S. reliance on China, the Defense Department has ordered contractors to remove Chinese rare earths from their supply chains for magnets by next year.

 

At the request of the copyright holder, you need to log in to view this content

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Most Discussed

  1. 1
     
     
     
     
  2. 2
     
     
     
     
  3. 3
     
     
     
     
  4. 4
     
     
     
     
  5. 5
     
     
     
     
  6. 6
     
     
     
     
  7. 7
     
     
     
     
  8. 8
     
     
     
     
  9. 9
     
     
     
     
  10. 10