U.S. Restricts Exports of Recoverable Critical Minerals, Covering Lithium Battery and Tungsten ScrapA · FULL TRANSLATION

The U.S. Department of Commerce has announced export restrictions on recoverable critical minerals, covering waste from lithium-ion batteries and tungsten. Specific item lists, effective dates and exemptions should be checked against the original announcement.

The direction is unmistakable: competition over critical minerals is moving downstream from mining rights to ownership of scrap. Primary ore is concentrated in a few countries and that will not change, but scrap is generated where products are consumed. Whoever holds the waste stream holds a second mine.

The implications for Japan run deep. Japan has no significant ore deposits and imports almost all of its critical metals, but it operates East Asia's most complete recycling and refining chain — the concept of the urban mine originated there. A meaningful share of its recycled feedstock has come from imported scrap, including from the United States. Refiners will either pay more for what remains or push their collection networks into Southeast Asia.

Taiwan faces the same exposure with heavier electronics consumption. As the United States, the European Union and China each treat scrap as strategic material, the open market narrows.

Watch the exemption clauses and effective date, and how Japan's industry ministry responds.