Julie Dobbs, Head of Legal and Compliance at Elemental North America, highlights a growing threat to U.S. critical mineral supply chains. State restrictions and federal trade policies are choking the catalytic converter recycling industry. Without urgent legislative education, these misguided actions risk national security, economic stability, and domestic access to essential materials.
The U.S. catalytic converter recycling industry is caught in a chokehold, squeezed from both ends by misguided policies. At the state level, legislative restrictions have stifled legitimate operations, obstructing interstate commerce and access to recyclable materials. Meanwhile, at the federal level, trade policies have made it increasingly difficult for recyclers to obtain critical minerals from international partners. This dual crisis threatens not only the survival of the recycling industry but also the stability of critical mineral supply chains, national security, and economic resilience. Addressing these issues starts with a fundamental step: educating lawmakers about the essential role of recyclers and the consequences of uninformed policies.
Recyclers are not merely environmental stewards; they are a critical link in the national security supply chain. By recovering and processing valuable materials such as platinum, palladium, and rhodium, catalytic converter recyclers reduce the nation’s dependence on foreign sources and ensure a stable domestic supply for key industries, including automotive, electronics, and defense. Executive orders and federal directives have underscored the importance of securing critical minerals, yet lawmakers at both state and federal levels continue to impose policies that undercut the industry’s ability to function effectively.
One of the primary obstacles recyclers face is the widespread lack of understanding among legislators about how the industry operates. This knowledge gap has led to the passage of restrictive laws intended to curb theft and illegal activities, but which instead place undue burdens on legitimate businesses. Illinois serves as a prime example, where new regulations severely limit where recyclers can purchase recyclable materials. Illinois passed this law under the premise of reducing theft rates, despite data showing a 58% decline in the state and a 74% drop nationwide before its passage. Recyclers repeatedly attempted to educate legislators but were denied a voice by bill sponsors. Meanwhile, law enforcement and insurance companies, fully aware of this data, pushed the bill forward without involving the key stakeholders they sought to regulate. Illinois is just the latest state to follow this pattern, with several others enacting similarly flawed policies. The result is a regulatory environment that stifles legitimate operations, forcing small businesses to shut down and ultimately disrupting supply chains and weakening domestic material recovery efforts.
The financial strain of these policies is compounded by federal trade restrictions that threaten the industry from another angle. While the state-level crisis remains a significant barrier, recent tariffs present an even more immediate challenge. The recycling industry, along with many others, is facing economic uncertainty due to tariffs that make it nearly impossible to import critical minerals from Canada, Mexico, and other trade partners. Initially, industry leaders believed they were protected under previous executive orders prioritizing critical minerals, but now they find themselves excluded from key exemptions. This inconsistency is an unintended consequence that, if not swiftly addressed by the Trump administration, will choke the industry, making it difficult for U.S. businesses to freely obtain critical minerals. As a result, the U.S. government itself will be forced to rely even more heavily on foreign sources to meet its own supply chain needs, precisely the scenario that past policies aimed to prevent.
When restrictive legislation and punitive tariffs converge, the result is a weakened domestic recycling industry, jeopardizing national security and economic stability. Misallocated federal funding exacerbates this issue by prioritizing new research projects over the enhancement of existing commercial recycling processes. Instead of strengthening the industry’s immediate ability to contribute to national security goals, these missteps have left recyclers struggling to survive. The long-term consequences of such policies will be detrimental to U.S. competitiveness, forcing businesses to seek critical minerals from unstable or adversarial foreign markets rather than securing them domestically.
The solution to this crisis lies in better education and direct engagement with policymakers at both the state and federal levels. At the state level, legislators must understand the unintended consequences of restrictive regulations on recyclers and work with industry experts to craft laws that enhance security without stifling legitimate businesses. At the federal level, trade policies must be re-evaluated to ensure that tariffs do not harm domestic industries that are essential to national security. Industry stakeholders have taken an active role in advocacy, ensuring that lawmakers receive accurate information and firsthand insights into how their decisions impact the recycling industry. The Recycled Materials Association actively provides educational initiatives, such as forums, webinars, and direct meetings with policymakers and law enforcement to close this knowledge gap and influence more informed regulatory frameworks.
As someone deeply involved in the catalytic converter recycling sector, I have seen both the promise and the peril facing the industry. The work of recyclers extends far beyond environmental benefits—it is a matter of national security, economic stability, and industrial resilience. I respect our government’s leadership and support policies that prioritize American industries, but it is critical that the unintended negative impacts of these policies are considered before action is taken. By continuing to share real-world experiences and push for informed decision-making, we are doing our part—but now, legislators must actively listen, engage with industry experts, and take meaningful action to support recyclers and the critical role they play in national security.
The recycling industry is being cut off at both ends—a silent crisis at the state level that restricts operations and a loud crisis at the federal level that cuts off access to international materials. The urgent need for legislative education cannot be overstated. By bridging the knowledge gap, we can create a regulatory environment that supports legitimate recyclers, secures critical mineral supply chains, and enhances national security. It is time to move beyond misconceptions and recognize the indispensable role of the recycling industry in safeguarding our future. Through informed dialogue and strategic engagement, we can turn this crisis into an opportunity for policy-driven solutions and long-term industry resilience.
1The White House: Fact Sheet, https://www.whitehouse.gov/.
2U.S. Department of the Interior, “A Federal Strategy to Ensure Secure and Reliable Supplies of Critical Minerals,” Federal Register, published December 26, 2017, https://www.federalregister.gov/.
3Illinois General Assembly, HB 4589, https://www.ilga.gov/
4State Farm Newsroom, “State Farm data reveals 74 percent drop in catalytic converter thefts,” published September 10, 2024, https://newsroom.statefarm.com/
5U.S. Department of Energy, “Department of Energy Launches Minerals Sustainability Division to Enable the Ongoing Transformation of the U.S. Energy System and Help Secure a U.S. Critical Minerals Supply Chain,” published January 15, 2021, https://www.energy.gov/
