2026-16078RuleWallet

Feds Hoard 'Black Mass' Battery Waste for National Security? Export Ban Drops

Published Date: 8/6/2026

Rule

Summary

The Bureau of Industry and Security ("BIS") is publishing this temporary final rule to restrict the exportation of black mass and tungsten waste and scrap without a license. Specifically, as of August 27, 2026, 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. This action is taken pursuant to section 101 of the Defense Production Act of 1950, as amended ("DPA" or the "Act"), the Defense Priorities and Allocations System (15 CFR part 700) and Presidential Determination Pursuant to Section 101 of the Defense Production Act of 1950, as Amended, on Recoverable Critical Minerals and Materials, dated July 30, 2026 ("DPA Determination on Recoverable CMMs"), in which the President authorized the Department of Commerce ("Commerce") to address the scarcity of recoverable critical minerals and materials ("CMMs"). BIS invites the public to submit comments on whether any additional sales requirements are necessary or appropriate to promote the national defense.

Analyzed Economic Effects

7 provisions identified: 2 benefits, 5 costs, 0 mixed.

100% Domestic Sales Requirement

If you are a U.S. person selling black mass (Schedule B codes 8549.13.00.00, 8549.14.00.00, 8549.19.00.00) or tungsten waste and scrap (Schedule B code 8101.97.00.00), starting August 27, 2026 you must allocate 100% of your monthly sales to U.S. persons and keep the materials physically in the United States unless BIS grants prior authorization. This Directive Allocation Order runs through August 27, 2027 unless changed earlier.

Exception and Adjustment Process Available

If the 100% domestic sales rule would block a sale, you may apply to BIS for an adjustment or exception (a DPAS authorization or temporary license). Requests may be submitted on a rolling basis beginning August 6, 2026 through August 27, 2027, and BIS intends to respond within 14 days of receipt.

Exports May Be Detained by Customs

Covered materials intended for export may be detained by U.S. Customs and Border Protection while BIS reviews the shipment; detained goods made subject to a DPAS rated order will be consigned to BIS pending distribution or agency direction.

New Reporting and Information Collection

BIS will collect information from companies selling recoverable CMMs under a new OMB control (0694-0148); required information may include buyer identity, Schedule B code, quantity, and sale value to monitor compliance with the Directive Allocation Order.

Enforcement Risk and Penalties for Noncompliance

Failure to comply with the Directive Allocation Order can lead BIS to seek injunctions or other orders and punishments under 15 CFR 700.74 and related DPA provisions; BIS may also investigate and request information to enforce the rule.

Liability Shield for Compliance Actions

To the fullest extent consistent with law, a person will not be held liable for damages or penalties for acts (or failures to act) that result directly or indirectly from complying with the DPAS regulation or this Directive Allocation Order.

Possible Expansion to Other Materials

BIS may add additional recoverable critical minerals and materials identified in the Presidential Determination to this or future allocation orders; any additions will be announced in the Federal Register.

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Key Dates

Published Date
Rule Effective
8/6/2026
8/27/2026

Department and Agencies

Department
Independent Agency
Agency
Commerce Department
Industry and Security Bureau
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