The United States has implemented new export restrictions targeting tungsten scrap and lithium-ion battery “black mass,” a move that could disrupt global supply chains and impact Chinese refining operations. Announced on Thursday by the administration of President Donald Trump, the directive requires domestic suppliers to sell their entire monthly outputs of these materials exclusively to U.S. buyers, effectively barring exports for one year.

Tungsten, valued for its density, strength, and high melting point, plays a crucial role in industries such as semiconductors, aerospace, artificial intelligence chips, and defense technologies. Black mass—the shredded residue from recycled lithium-ion batteries—contains strategically important metals like lithium, nickel, and cobalt, which are essential for battery production and other industrial applications.

This latest restriction by Washington follows China's own export controls on tungsten products initiated in February 2025, which require exporters to obtain government licenses. In response, China sought alternative supplies by permitting imports of compliant battery black mass in August 2025 and reducing related tariffs earlier this year. Despite these measures, Chinese customs data indicate that shipments of controlled tungsten products to the United States fell to zero during the first seven months of 2026.

Experts warn the U.S. directive could strain supply availability for Chinese refiners who rely on lower-cost imported feedstock. Liang Yan, a professor of economics at Willamette University, noted that while the one-year timeframe is insufficient for the U.S. to establish significant processing capacity—new refineries might take between two and five years to build—the policy effectively secures supplies for government stockpiles and locks up resources domestically. “China will be impacted in the short term, as this ban will reduce its refiners’ feedstock,” she said.

The United States produces approximately 6.9 million tonnes of electronic waste annually, ranking second only to China, with around 1.5 million tonnes exported each year, according to electronics recycler EWaste Phoenix. U.S. exports of black mass reached 100,667 tonnes in 2025, up nearly 49% from the previous year, while China imported 111,657 tonnes of industrial waste—including black mass—from the United States in the first seven months of 2026, accounting for nearly 10% of the country’s feedstock supplies.

This shift in policy is expected to reshape global battery recycling supply chains. A recent report by S&P Global suggested that tighter U.S. export controls could reduce the availability of black mass for Chinese refiners, even as Chinese firms continue to invest internationally to secure raw materials and expand recycling capacity overseas.

Xu Tianchen, a senior economist at the Economist Intelligence Unit, cautioned that tungsten and black mass restrictions might represent the initial phase of broader U.S. controls. “Anything that the U.S. faces Chinese export controls on could be included in the future,” Xu said, citing rare earth elements, antimony, gallium, and germanium as possible candidates.

In addition to official trade flows, reports indicate that China maintains an active informal market for used batteries and black mass, where unlicensed workshops compete with authorized recyclers. This dynamic adds complexity to the impact of export restrictions on global material availability and industrial supply chains.