Commerce Publishes Temporary Final Rule Restricting Export Of “Black Mass” From Shredded Battery Scrap

The U.S. Department of Commerce, Bureau of Industry and Security (BIS) published on August 6, 2026, a temporary final rule (the Rule) titled “DPAS Directive Allocation Order and Additional Requirements for Recoverable Critical Minerals and Materials” to restrict the exportation of black mass and tungsten waste and scrap. According to BIS, “this temporary rule is necessary to immediately secure the supply of certain recoverable [critical minerals and materials] CMMs to ensure an adequate supply of these materials deemed essential to the national defense.” Specifically, the Rule requires that U.S. persons engaged in the sale of black mass and tungsten waste and scrap must allocate 100 percent of monthly sales to U.S. persons, unless an adjustment or exception is obtained in advance from BIS. “Black mass” is defined in the Rule to mean “any shredded lithium-ion battery scrap that contains cathode material (which may include aluminum, copper, iron, lithium, cobalt, nickel, and manganese),