US Restricts Exports of Tungsten Scrap and Battery Metals to Secure Supply

Key Facts

In a move reflecting escalating US efforts to secure strategic mineral supply chains amid global trade tensions, the Department of Commerce has imposed new export restrictions. Under a temporary final rule, the export of tungsten scrap and battery black mass will be restricted for one year unless a license is obtained. This action follows a Presidential Determination under the Defense Production Act, which identified these materials as scarce and essential for national defense and domestic industry.

These restrictions arrive as global markets face supply pressures, with reports indicating that tungsten prices have surged by over 500% in the past year due to Chinese export controls and heavy military spending. The US policy aims to ensure that recycled materials from lithium-ion batteries and tungsten waste remain within the domestic market to bolster the military-industrial base, particularly as competition for critical resources intensifies.

Based on market data as of August 5, 2026, traders are monitoring how these policies will impact input costs for technology and defense firms. In the absence of real-time price data for specific instruments linked to these metals, focus remains on upcoming economic catalysts, including interest rate decisions and global growth figures, to assess how the tightening availability of recycled minerals might affect industrial sector stability.