8 August 2026
Executive Summary
The United States has moved to restrict exports of two increasingly valuable forms of industrial waste: lithium-ion battery “black mass” and tungsten-containing scrap.
The Commerce Department measures are due to take effect on 27 August 2026 for one year, subject to limited case-by-case exceptions.
Black mass is produced when used lithium-ion batteries are shredded and contains recoverable materials including lithium, nickel, cobalt, manganese and graphite.
Tungsten is strategically important because of its exceptional hardness and heat resistance and is widely used in specialist manufacturing and defence applications.
The policy is intended to retain recoverable critical materials inside the United States and reduce reliance upon overseas—and particularly Chinese—processing capacity.
UK Impact
UK businesses may be affected through international markets for:
- Battery recycling.
- Electric-vehicle materials.
- Tungsten products.
- Specialist steels.
- Cutting and drilling tools.
- Aerospace components.
- Defence manufacturing.
- Electronic waste.
Companies purchasing recycled materials from US suppliers should confirm whether existing export contracts can still be fulfilled after the restrictions take effect.
Businesses sending material to the United States for processing should also understand whether the resulting recycled material can legally be exported again.
Contracts that previously treated scrap as a low-value by-product may require reconsideration where that scrap contains strategically important recoverable minerals.
Global Impact
The policy represents an important evolution in critical-mineral strategy.
Governments have traditionally focused upon mines.
Increasingly, they are treating waste itself as a strategic resource.
The United States exports tens of thousands of tonnes of electronic waste and scrap each month. Retaining more of that material domestically could provide American recyclers with greater access to feedstock, although industry representatives have warned that US processing capacity is not yet sufficient to handle everything available.
Europe is moving in a similar direction. EU policy provides for tighter controls on exports of lithium-ion battery waste and black mass, reflecting concern that valuable secondary raw materials are leaving Europe for processing elsewhere.
This suggests that international competition for critical minerals is expanding from mines into recycling yards, factories and waste streams.
Our View
Businesses should stop treating strategically valuable scrap as ordinary waste.
Companies should:
- Identify which waste streams contain recoverable critical minerals.
- Review ownership clauses governing manufacturing scrap.
- Confirm whether recycling contracts permit overseas processing.
- Check export restrictions before moving material between jurisdictions.
- Reassess the commercial value of battery and metal waste.
- Identify domestic and regional recycling alternatives.
- Include regulatory-change provisions in long-term recycling agreements.
- Verify what happens to recovered materials after processing.
- Avoid surrendering valuable scrap rights automatically within supplier contracts.
The circular economy is becoming part of national industrial strategy.
Tomorrow’s critical-mineral supply may already exist inside today’s discarded battery, machine tool or manufacturing waste.
Risk Indicator: HIGH
Disclaimer
The information contained within these Market Alerts is provided for general market awareness and informational purposes only. It does not constitute financial, legal, investment, regulatory or insurance advice. Whilst every effort has been made to ensure accuracy at the time of publication using multiple reputable and independently verified sources, geopolitical events, legislation, regulation and market conditions may change rapidly. Readers should obtain appropriate professional advice before acting upon any information contained herein.
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