The U.S. Department of Commerce has cleared American Battery Technology Co. (ABTC) to export and sell up to $100 million of recycled black mass, the company confirmed on Oct. 2, 2026. The license carves out an exception to a federal ban that otherwise channels 100% of domestic black mass output to U.S. buyers through Aug. 27, 2027.

ABTC operates the critical-mineral recycling facility near McCarran, Nevada, where it shreds lithium-ion packs into black mass — a powder containing cathode-grade lithium, cobalt, nickel and manganese — and recovers copper, aluminum and steel as co-products. The company argued that U.S. battery collection and shredding now outpace downstream refining, leaving producers with limited offtake at home.

What does the license cover?

• Up to $100 million in cumulative export sales of recycled black mass
• Material sourced from ABTC's Nevada critical-mineral recycling facility
• Sales routed through export channels designated by the Commerce Department's Bureau of Industry and Security (BIS)
• Operations continue at the Nevada site while the company scales processing

Why did ABTC seek an exception?

Black mass generation has grown faster than U.S. hydrometallurgical and pyrometallurgical refining capacity, according to ABTC's application. The rule BIS published in the Federal Register on Aug. 6, 2026 allows exceptions when exports support offshore processing or refining with the intent that refined materials return to the United States, when a ban would cause "undue hardship," or when it would reduce domestic supply of critical minerals.

ABTC framed the license as a bridge measure. CEO Ryan Melsert said the company is "grateful for this license and continued support from the U.S. government for the sales of our domestic critical mineral products." He added that the approval demonstrates ABTC's reliability and strengthens its commercial standing.

How big is ABTC's position?

The Nevada site handles large-format batteries from original equipment manufacturers, end-of-life electric vehicles, consumer electronics and stationary battery storage systems pulled from data centers and AI facilities. Feedstock volumes have climbed as those streams retired from first-life use.

ABTC is also building a commercial-scale lithium hydroxide refinery in Nevada, partly funded through a $57 million grant reinstated by the U.S. Department of Energy in June 2026. The company's black-mass line is meant to feed that downstream plant, alongside third-party refiners.

What is the policy backdrop?

BIS's directive treats recoverable critical minerals and materials — a category that also includes tungsten — as a national security asset. The rule states that "the inadequate supply of [critical minerals and materials] poses an increasing risk to our national defense and security" and frames the allocation order as a way to "take immediate action to secure the supply" of those inputs. China currently dominates processing capacity for the cathode metals embedded in black mass.

The BIS order runs through Aug. 27, 2027, with mandatory 100% domestic allocation as the default. Each exception request is evaluated on its own merits, and BIS has not disclosed the volume of additional applications pending or approved beyond ABTC's.

What happens next?

• The license permits export sales up to a $100 million cap; ABTC must track volumes and buyer destinations for BIS review
• ABTC's Nevada lithium hydroxide refinery remains under construction, with DOE grant milestones dictating draw schedules
• The allocation order sunsets on Aug. 27, 2027, unless BIS extends or modifies the rule — the binding deadline for whether domestic refiners can absorb black mass volumes without the export escape valve
• Competitors with similar refining-gap exposure are likely to file parallel exception requests before the order expires