The US administration has introduced new export restrictions targeting tungsten scrap and 'black mass,' a substance derived from shredded lithium-ion batteries that contains valuable metals like cobalt, nickel, and lithium. By limiting the export of these materials, the US aims to bolster its domestic recycling capabilities and secure supply chains for critical minerals essential to the green energy transition.

Analysts suggest that these measures will create immediate pressure on Chinese refiners, who have historically utilized these materials as a cost-effective source of feedstock. The restriction effectively cuts off a supply line for Chinese companies, forcing them to seek alternative sources or increase domestic recycling efforts. Experts cited in reports indicate that Beijing may respond by leveraging its own existing export controls on rare earth elements and magnets as a countermeasure in the ongoing trade friction over critical minerals.

While the US frames the policy as a strategic move to secure national industrial interests, the long-term impact remains uncertain. The shift could accelerate global efforts to localize battery recycling, as nations compete to secure the raw materials necessary for electric vehicle production and defense technologies.