Trump Orders Export Restrictions on Critical Minerals Scrap to Counter China's Dominance

On July 30, 2026, President Donald Trump signed an order allowing the Commerce Department to block exports of critical mineral scrap, such as old batteries and electronic waste. The move aims to boost domestic recycling and counter China's dominance in critical minerals, especially as defense contractors face a January 1, 2027, deadline to stop buying Chinese minerals. Recyclers like Li-Cycle and Ascend Elements have faced bankruptcies, while tungsten supply remains highly vulnerable.

E-waste export restrictions order

• ▪The United States exports nearly 33,000 metric tons of electronic waste per month, according to data from the Basel Action Network.
• ▪U.S. President Donald Trump signed an order on July 30, 2026, giving federal officials power to block exports of old batteries and electronic waste.
• ▪The presidential determination allows the U.S. Commerce Department to issue rules preventing electronic waste from being sent overseas.

China critical minerals dominance

• ▪China has restricted exports of rare earths and other minerals during moments of trade tension with the United States.
• ▪China controls the vast majority of critical minerals output, and the United States relies on Beijing for more than a dozen vital substances.

US domestic recycling industry challenges

• ▪U.S. recyclers have complained that domestic firms cannot compete with global competitors who pay above-market rates for scrap.
• ▪North American battery recyclers Li-Cycle and Ascend Elements both filed for bankruptcy within the 18 months preceding July 2026.
• ▪Blue Whale Materials and two other firms are building battery recycling operations in Oklahoma.

Defense contractor sourcing deadline

• ▪Defense industry contractors and other manufacturers face a January 1, 2027, deadline under federal regulations to stop purchasing minerals from China.
• ▪President Donald Trump signed an executive order on July 20, 2026, making it harder for defense contractors to secure waivers for purchasing critical minerals from prohibited foreign suppliers.

Tungsten supply shortage risks

• ▪The recycling firm Amermin stated in a March 2026 letter to Commerce Secretary Howard Lutnick that tungsten exports pose an unacceptable risk to American industrial and military readiness.
• ▪The United States has not commercially mined tungsten since 2015, leaving scrap as one of the only domestic sources of the metal.

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