According to a report by The Wall Street Journal on August 5th, the U.S. Department of Commerce has recently introduced new regulations that will restrict the export of lithium-ion battery waste and tungsten waste starting from the end of this month, for a period of one year, in order to promote the ‘de-Sinoization’ of the critical raw material supply chain.
According to regulations, certain battery waste and tungsten waste in the United States must be sold domestically first. The U.S. government states that this measure is aimed at ensuring the supply of key materials needed by the defense industry and reducing dependence on foreign supply chains.
The report indicates that as the United States and other Western countries accelerate the search for key mineral sources, issues related to supply chain security are becoming increasingly important. In recent years, China has strengthened the management of exports of certain key materials, which has raised concerns about supply risks among countries such as the United States.
Tungsten is a high-strength, high-temperature-resistant metal, widely used in tank armor, weapons, and engine components. Data from the U.S. Geological Survey shows that China is the world's largest tungsten producer, and tungsten has been included in the scope of export control.
Another restricted material is lithium-ion battery waste, also known as “black mass”. This powder, produced from the recycling of discarded electric vehicle batteries, contains key materials such as lithium, cobalt, nickel, manganese, and graphite. It can be recycled through chemical treatment or smelting processes.
The U.S. Department of Commerce stated in its announcement that U.S. President Trump believes that shortages of key materials are posing a growing national security risk. The new restrictions aim to “ensure an adequate supply of key materials necessary for defense.”
However, the new regulations also provide for certain exemptions. For example, materials can be exported for processing or refining overseas, and then returned to the United States.
In recent years, the United States has continuously invested in building critical mineral supply chains that do not rely on China, including promoting overseas mining projects and providing financing support. Additionally, the U.S. Department of Defense requires contractors to remove Chinese rare earth materials from the magnet supply chain by next year.
Analysts point out that the US measures reflect its urgent need to strengthen the autonomy of key supply chains. However, it is not easy to completely eliminate dependence on China in the short term. China has long held a significant position in areas such as rare earths, tungsten, and battery material processing. For the US to establish a complete alternative supply chain requires not only substantial investment but also faces multiple challenges related to technology, costs, and industrial chain support.
