Commodities
Home›Commodities›Mining›US scrap rules aim to boost domestic critical-mineral…
US scrap rules aim to boost domestic critical-mineral processing
A one year requirement will push some lithium ion battery scrap, including black mass, and tungsten scrap to be sold to US buyers unless an exception applies.
A recent US policy move to keep more critical mineral scrap processing in the country is intended to strengthen supply security, but its effectiveness will hinge on whether domestic industry can convert scrap into usable secondary minerals, not simply on how much material remains in the US, according to an op ed in Mining.com.
The article says that later in August, a one year measure will require certain scrap streams, including lithium ion battery scrap such as black mass and tungsten scrap, to be sold to US buyers unless an adjustment or exception applies. The policy is aimed at reducing reliance on foreign processing capacity while retaining strategically important material.
The op ed argues that recycling and scrap retention are not the same as supply, because scrap still must be collected, sorted, processed and refined into products that battery, defense, and industrial customers can use. It notes that the International Energy Agency estimates recycling could reduce the need for new mine development by about 40% for copper and cobalt and 25% for lithium and nickel by 2050 under an energy transition scenario, though demand for primary production would remain.
It also cautions that one tonne of black mass does not translate to one tonne of lithium, nickel, or cobalt supply, because the value depends on factors such as chemistry, metal content, recovery costs, and whether the finished material meets customer specifications. The article adds that it frames the key question as whether the scrap becomes qualified recoverable strategic supply, requiring material availability, collection and sorting, domestic processing capacity, technical and economic recoverability, and customer specification compliance.
Latest closeCopper $6.606 ▲0.2%