Under the rule, U.S. persons engaged in the sale of covered black mass and tungsten waste and scrap must allocate 100 percent of their monthly sales to U.S. persons unless BIS grants an adjustment or exception. Covered materials also must remain physically located within the United States unless otherwise authorized by the agency.
The action is being implemented through the Defense Priorities and Allocations System (DPAS) under the Defense Production Act following a presidential determination that recoverable critical minerals and materials are essential to the nation’s defense and economic security.
For purposes of the rule, “black mass” is defined as shredded lithium-ion battery scrap containing cathode material, anode material or other residual battery cell materials. The requirements apply to specified Schedule B classifications for black mass and tungsten waste and scrap.
BIS said the rule is intended to increase the domestic availability of critical mineral feedstocks needed to support U.S. refining, battery manufacturing, and advanced materials production. By directing covered materials to domestic purchasers, the agency seeks to reduce reliance on foreign processing and encourage additional investment throughout the U.S. recycling and critical minerals supply chain.
The temporary rule also establishes a process for requesting adjustments or exceptions. BIS said requests will be evaluated on a case-by-case basis and may be approved when materials are exported for processing and returned to the United States, when compliance would result in undue hardship, or under other circumstances determined by the agency. U.S. Customs and Border Protection will assist with enforcement of the new requirements.
The temporary rule is scheduled to remain in effect through Aug. 27, 2027, while BIS solicits public comments and evaluates whether additional regulatory action is warranted. Interested stakeholders may submit comments through the federal rulemaking process.
Published August 2026