A July 30 directive lets the Commerce Department curb exports of battery scrap, rare-earth magnet waste and other recoverable materials to support domestic defense supply chains and reduce reliance on China.
President Donald Trump signed a July 30 directive authorizing the Commerce Department to restrict exports of recycled critical minerals and materials, including black mass from shredded batteries, end-of-life rare-earth permanent magnets, swarf and other scrap containing critical minerals. Issued under the Defense Production Act of 1950, the order is designed to steer recoverable materials to U.S. recyclers, reinforce domestic defense supply chains and reduce dependence on foreign sources, particularly China. The move comes as domestic recyclers have struggled to compete with overseas buyers and as U.S. manufacturers face a January 1, 2027 deadline to stop sourcing certain materials from China, Russia, Iran and North Korea. Industry participants and a recent Government Accountability Office assessment have warned that building enough domestic mining, processing and recycling capacity will take years, leaving enforcement and recycling scale-up as key factors to watch.