DPAS Directive Allocation Order and Additional Requirements for Recoverable Critical Minerals and Materials
Key claim: As of August 27, 2026, U.S. persons selling black mass and tungsten waste and scrap must allocate 100 percent of monthly sales to U.S. persons unless BIS grants an advance adjustment or exception, under Defense Production Act section 101 authority.
Abstract
(Rule · Commerce Department, Industry and Security Bureau) 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.
Why this matters
A 100% domestic sales-allocation requirement is a strong trade-restrictive tool that functions as a de facto export restriction on black mass and tungsten waste/scrap without invoking EAR export licensing. Domestic recyclers and scrap dealers lose access to higher-priced foreign buyers (notably Asian refiners), while U.S. downstream processors gain guaranteed feedstock access—potentially compressing scrap prices for exporters and lowering input costs for domestic refiners. The rule is a notable expansion of DPA §101 priorities-and-allocations authority into commodity trade flows.