On July 30th, local time, Reuters reported citing two sources within the White House who said that U.S. President Donald Trump signed an order on Thursday, authorizing federal officials to prevent the export of old batteries containing key minerals and other electronic waste. This is part of a broader initiative by the United States aimed at promoting domestic recycling and countering China's dominance over key materials related to national security.
Two officials revealed that this order will allow the U.S. Department of Commerce to issue regulations prohibiting the shipment of so-called ‘e-waste’ overseas. The government aims to direct these materials to domestic recyclers, especially those dealing with tungsten and battery fragments.
According to environmental organizations, the United States exports nearly 33,000 tons of electronic waste each month, many of which contain lithium and other key minerals that can be recycled. The export of this electronic waste has long been a source of dissatisfaction for the U.S. recycling industry. The industry argues that keeping these materials in the country for recycling would help Washington better achieve its mineral production goals and reduce the need for new mines.
According to the source familiar with the matter, the Trump administration has received complaints from recyclers, stating that domestic companies cannot compete with international competitors who purchase waste materials at prices higher than market rates. In the past 18 months alone, several North American recycling companies have faced financial difficulties, with both Li-Cycle and Ascend Elements having filed for bankruptcy.
According to data from the United States Geological Survey, China dominates the production of most critical minerals. The United States holds a large amount of critical minerals in its finished products, including lithium-ion batteries and magnets. However, the country also relies heavily on mineral imports.
The report indicates that since the construction of new mines and processing facilities may take several years, the Trump administration is actually turning to a faster solution: retaining these minerals that are already in the United States.
As a metal used for ammunition and other weapons, the issue of tungsten is particularly urgent. The United States has ceased commercial mining of tungsten since 2015, and global supply still relies primarily on production and exports by China, making waste materials one of the few domestic sources of this metal.
Reuters reported that Trump’s executive order continues a series of actions this year aimed at reducing the United States' dependence on the mineral supply chain controlled by China.
Since his return to the White House, Trump has made the mining and processing of critical minerals in the United States a national security priority. He has invested hundreds of billions of dollars in nearly 150 mineral companies, attempting to weaken China's dominance in the supply chains of weapons and other strategic products.
According to the latest federal regulations, the U.S. defense industry and other manufacturers have only five months left before the deadline on January 1 next year. By then, they must stop purchasing critical materials such as rare earths, magnets, tungsten, molybdenum, and tantalum from China, Russia, Iran, or North Korea.
But this goal faces a serious reality: 16 industry executives, investors, analysts, and policymakers interviewed by Reuters all believe that U.S. mining and processing companies are not ready yet, and they are still far from meeting domestic demand.
Mining analyst and consultant Chris Berry said that the United States will almost certainly be unable to produce enough minerals by January 2024 to end its dependence on imports, “to build the infrastructure required for competition, it will take many years."
