US Bans Tungsten and Battery Scrap Exports to Counter China

The United States Department of Commerce implemented a one-year export ban on tungsten scrap and black mass—shredded lithium-ion battery material—effective August 27, 2026. Authorized by President Donald Trump under the Defense Production Act, the measure requires suppliers to sell these materials domestically to reduce strategic dependence on China, which produced nearly 79% of global tungsten in 2025.

The restrictions respond to global trade fragmentation and Chinese export controls from February 2025, which contributed to an 800% increase in Rotterdam tungsten prices. While tungsten is essential for military armor and ammunition, it is also critical for aerospace, medical, and semiconductor manufacturing. Specifically, tungsten hexafluoride is required for the microscopic wiring in advanced memory chips that power artificial intelligence infrastructure.

Domestic supply efforts face internal hurdles. While 3 Proton Lithium discovered the largest U.S. tungsten deposit in Nevada's Great Basin Desert, NASA has blocked drilling in the area to protect satellite signal tracking. Additionally, industry analysts warn that the U.S. currently lacks sufficient domestic refining capacity to absorb the volume of material previously exported to Asian recyclers in South Korea and Southeast Asia.