Trump Bans Used Battery Exports... Moves to Block China’s Recycling Market Monopoly (Comprehensive)

Extraction of Critical Minerals Through Waste Battery Reprocessing
China Controls 80% of the Used Battery Recycling Market

Associated Press Yonhap News

U.S. President Donald Trump signed an executive order on July 30 (local time) banning the overseas export of waste containing critical minerals, including used batteries. The move is interpreted as a response to China’s recent dominance in the waste battery market and the nation’s extraction of large quantities of key minerals through recycling. The competition for supremacy over critical minerals between the United States and China is expected to intensify further.

Trump: "Ban on Used Battery Exports to China, Security Risk"

Reuters Yonhap News

According to Reuters on July 30 (local time), President Trump signed an executive order banning the export of electronic waste containing critical minerals, such as used batteries and end-of-life electronic devices.

In a memorandum sent to direct the U.S. Department of Commerce to implement the executive order, President Trump stated, "Recyclable critical minerals and materials (CMM) are essential industrial resources for strengthening national defense capabilities," and added, "A shortage of CMM in the United States is increasingly posing a significant risk to defense and national security." He also pointed out, "The United States is heavily dependent on imports of certain critical minerals," emphasizing that "this structure could lead to serious and prolonged supply chain disruptions."

President Trump ordered, "The United States must take immediate measures to secure recycled CMM supply" and instructed that "appropriate responses should be prepared under the Defense Production Act (DPA) of 1950." CMM subject to the export ban are defined as "black mass," a powder containing nickel, cobalt, and manganese obtained by shredding and crushing waste batteries or manufacturing residues, as well as end-of-life rare-earth permanent magnets and other post-manufacturing recyclable products.

This measure comes amid concerns that a significant portion of electronic waste exported from the United States flows into China. U.S. recycling firms have complained to the Trump administration that overseas competitors, including Chinese companies, purchase waste materials at prices above the market rate, making it difficult for U.S. firms to compete in sourcing raw materials.

According to U.S. environmental group Basel Action Network, the volume of exported electronic waste from the United States reaches approximately 33,000 tons per month. This waste contains substantial quantities of recyclable critical minerals such as lithium. The U.S. recycling industry expects that recycling these materials domestically will help achieve national mineral production targets and reduce the need for new mine development.

China Dominates Global Used Battery Market... Over 80% Market Share

EPA Yonhap News Agency

The reason the Trump administration has responded so sensitively as to implement an export ban on used batteries is reportedly because China has almost completely dominated the used battery recycling market.

According to Rho Motion, a market analysis company specializing in electric vehicles and batteries, China accounted for more than 80% of the global used battery recycling market last year. The black mass refining market is over 89% dominated by Chinese firms. While China already holds more than an 80% share of the battery production market, it has virtually monopolized the recycling market as well. Last year, China generated 3.6 million tons of used batteries, overwhelmingly more than the combined total of other Asian regions, such as South Korea and Japan (360,000 tons), Europe (410,000 tons), and North America (190,000 tons).

The Chinese government has also strengthened used battery recycling regulations this year. According to Chinese business media Caixin, the Ministry of Industry and Information Technology of China announced that, starting in April, it would standardize EV battery recycling and make recycling mandatory for EV battery manufacturers. The Chinese government is focusing even more on the supply of critical minerals through used battery recycling by providing massive subsidies to recycling companies.

The reason for China’s focus on used battery recycling is the anticipated expansion of the used battery market alongside the growing applications of batteries in the electric vehicle market and advanced robotics. According to energy market research company SNE Research, the global used battery recycling market was valued at approximately $20.7 billion last year and has been growing at an average annual rate of over 17%. It is expected to surge to $208.9 billion by 2040.

This content was produced with the assistance of AI translation services.