An executive order signed by President Trump this week will allow federal regulators to restrict the export of critical minerals and materials (CMM) in the name of national security.
The order signed July 30 gives the Secretary of Commerce powers under the Defense Production Act to issue “regulations, rules, guidance and procedures” to keep critical mineral supplies on shore.
The order defines CMM as black mass created from used batteries, end-of-life permanent magnets and other scrap containing minerals such as lithium, nickel and tungsten, 83% of which is mined in China and is used in construction equipment and electronic components. These materials contain CMM that can be extracted, but allowing them to go overseas gives foreign processors first access to them, the order said.
Such materials are often exported due to financial or infrastructure shortfalls domestically; black mass, for example, has to be sent overseas because more of it is created in the US than can be processed by domestic-based companies. The US exports about 33,000 metric tons of e-scrap per month, according to the environmental group Basel Action Network.
Financial issues exacerbate the issue. Battery processor Li-Cycle and recycler Ascend Elements have both filed for bankruptcy within about the past year, citing the lack of a viable path to profitability.
“CMMs are pervasive in defense supply chains and are key inputs in advanced defense systems that support technological superiority, operational readiness and an array of high-performance military equipment,” the White House said in a fact sheet accompanying the order.
Industry leaders lauded the move.
“The executive order reinforces that critical minerals and the need to keep end-of-life batteries and manufacturing scrap domestically are a long-term strategic priority for the US,” said David Klanecky, president and CEO of battery recycling company Cirba Solutions. “Battery recycling underpins America’s manufacturing competitiveness and protects our national security on critical minerals for decades to come.”
This comes days after the Government Accountability Office issued a report detailing the need for and potential ways to bolster domestic critical mineral supplies. That report found that the US, in some cases, relies completely upon foreign supplies for critical minerals, creating a hazardous situation should supply chains be severed. Congress is also considering several bills to bolster the domestic mineral supply.
Several other recent moves have been made pertaining to mineral supplies. The White House passed a separate order earlier in July that makes it more difficult for defense contractors to secure waivers to buy minerals from prohibited foreign suppliers, regardless of need and domestic availability. And a previous order bans defense manufacturers from buying critical minerals from Chinese suppliers as of Jan. 1, 2027.
There’s no word yet on when the Commerce Department will act or what actions it may take.
