Looming Problem
There is a looming problem with the production of black powder and other materials in the US. As we know the US only has one manufacturer left and the industry is constantly struggling to stay afloat with accidents common, production at very low levels because of external issues which I will discuss later and the war in Ukraine straining not only our supply but the supply of other countries. This black powder shortage is a looming issue and is only getting worse.
In this article I will discuss the history, regulations in the US and external factors that cause the black powder market to struggle to keep up with normal demand. Right now the black powder shortages are compounding and it will take a minimum of 20 years for the industry to recover. There are many factors to include over regulation, not maintaining our national stockpile, lack of supply for precursor chemicals and the federal government causing industry distrust that has stretched the only remaining manufacturer and pushed powder prices to unreasonable levels.
Unreasonable Regulations
One of the main reasons the Government can’t compel private industry to step up to the plate and manufacture black power is due to heavy regulations to include regulatory issues that make it costly and harder to manufacture, store, transport and source materials needed to solve this issue. On the transportation side many carriers refuse to transport 1.1G (the classification of Black Power) due to the increased scrutiny that motor carriers get when hauling hazardous materials.
When manufacturing for the Government, the Government has the authority to waive the regulations in times of need. During Covid the Government utilized the Defense Production Act to compel businesses to manufacture mask, medical supplies, vaccines and Covid test materials. This same legal framework may be needed (and may be useful) to get more black powder manufacturing going in the US. The other issue is that margins are low on what black powder can be sold for so it is in many cases problematic for companies should they incur a regulatory issue.
An explosion in 2023 affected everything from missile production to ammunition and artillery. With only one producer of black powder operating, this is a continual threat and risk as explosions do occur in the manufacturing process from time to time and it takes awhile to get production going again. As evidenced in 2023 when Goex had an issue at their Louisiana facility. Following this incident, the US provided funding and Goex was then taken over by Estes Energetics. In addition, regulatory agencies such as CISA have had their own issues with there systems becoming the target of hackers which in and of itself is a major security risk because we don’t know for sure what nation state or threat actor has gained access to our critical infrastructure chemical manufacturing database.
History of Black Powder Production in the US in Recent Years
In the early 80’s many of the smaller companies closed and new regulations were introduced farther shuttering even some well known companies that could not afford the expensive safety measures that the Government insisted on. Environmental regulations also started affecting companies ability to dispose of waste materials. Companies that could not afford the increased cost of waste disposal and safety measures were forced to close.
During the gulf war there was a slight increase in black powder manufacturing but that was short lived. As new safety concerns and regulations were implemented, nearly all of the companies shuttered causing the situation that we see today. In the early 2000’s only a handful of small specialized companies existed dealing in the manufacture of small amounts of powder with many working only in specialized industries such as fireworks and hunting and sport shooting. Today there are only 2 companies Goex (true black powder) now owned by Estes Energetics and Pyrodex (sport powder manufacturers) that exist. It should be noted that Pyrodex is not suited for military or as a heavy propellant so truly only Este’s exist. From 2000 through recent years another major obstacle sprung up in the form of increased insurance rates for these types of businesses. These increased rates have forced out all of the smaller and regional manufacturers and truly on Este’s manufactures the most important powders available for military and industrial weapons use.
So today we are in a weird place where over-regulation has caused the US Gov to struggle to make munitions critical for national defense. So let’s dig into some of the issues and see why this issue is not so easy to solve.
Supply Chain Issues
The first thing in any manufacturing process is acquiring the materials needed to make the product. Black powder is a highly explosive substance composed of three main ingredients: saltpeter, charcoal, and sulfur. Saltpeter, also known as potassium nitrate, is the primary oxidizer in black powder and is responsible for its explosive properties. It is typically sourced from the deposits found in the soil and rocks of certain regions, such as caves and underground deposits. The supply chain for saltpeter typically involves mining these deposits, followed by processing and refining the material to extract the potassium nitrate. This process can involve crushing and grinding the ore, followed by separation and purification techniques such as dissolution and crystallization.
Sulfur is the final ingredient in black powder and serves as a secondary oxidizer. It is typically sourced from underground deposits, such as volcanic regions, and is extracted through a process known as the Frasch process. This process involves drilling into the deposit, followed by the use of heat and steam to extract the sulfur. Once extracted, the sulfur is then refined and purified to produce the desired quality for use in black powder.
The supply chain for black powder is complex and involves multiple steps and players. The sourcing of the raw materials, such as saltpeter, charcoal, and sulfur, typically involves mining and processing companies that specialize in the extraction and refinement of these materials. Once the materials are extracted and refined, they are then sold to manufacturers who produce the black powder. These manufacturers typically have facilities that are equipped with the necessary equipment and expertise to mix and process the ingredients into the final product. The final product is then sold to distributors, who in turn sell it to customers, such as fireworks manufacturers, military organizations, and recreational users.
One of the first ingredients (saltpeter) is found in mines. There are only a few mines that can produce the materials in the quantity needed for military, ammunition and for fireworks and explosives. Typically a large portion of the raw materials are sold to China for the manufacture of fireworks and military powders. So outside entities that which to purchase the raw materials have to compete with the domestic and export of Chinese fireworks manufacturers for access to the materials. Even when the raw materials are acquired they are not yet ready for use in the manufacture of black powder and must be highly purified for use. This process creates waste that is highly caustic as well as heavy metals and other byproducts of the purification process. Companies purifying materials have to have a way to get rid of the waste products and that is the first issue in the production chain. It is costly and expensive as well as time consuming to neutralize sulfuric acids and heavy metals must be disposed of in a controlled manner sometimes requiring shipment large distances for recycling or disposal. So even if we could get the potassium nitrate, the process of purifying it causes other secondary issues that have to be dealt with that also get the attention of EPA (US Environmental Protection Agency). In addition to the waste, storage requires security plans and large quantities require 24×7 security to ensure that materials are not being stolen or diverted in the process. The waste and security issues make it costly to order, receive, store and process these materials.
Storage Issues
Both the potassium nitrate as well as the finished product require secured facilities for storage throughout the process. Storage of these materials is (or was, more on that later) regulated by the Department of Homeland Security. DHS previously had the CFATS program which has been eliminated with Congress not allocating budget renewals.
The DHS CFATS program while now currently shuttered has a potential replacement with enforcement line items appearing in the EPA regulations recently. I guess with DHS losing the funding, the other agency is pushing to see if they can get funding for inspections and a program much like CFATS. The intent of the program is to reduce terrorist acts by monitoring chemical manufacturers. It should be noted that there has never been a terrorist incident directly related to chemicals themselves. All attacks that have occurred happened as a result of theft of already manufactured explosives which is why finished explosive devices and materials are heavily regulated by BATF-E. All of the security and monitoring, inventory all adds to the overall cost of production with many manufacturers looking for other things to manufacture that are more profitable. The biggest issue appears to be the heavy regulations imposed by EPA as that was the reason that manufacturers disappeared. The storage requirements and inventory required are just time consuming and costly.
Regulatory Issues
When researching this article we consulted with entities involved in the energetic materials industry. In researching we realized that many different local, state and federal agencies are involved in the regulation of materials. Below is a comprehensive list of agencies and what they are responsible for.
- Local Fire Code Officials – Responsible for inspection of storage facilities and responsible for safety and fire code enforcement of storage.
- Local Zoning Authority – Responsible for determining where materials can be manufactured and storage
- State Fire Marshals Office – Responsible for rules concerning the use of materials in their state
- State Insurance Boards – Responsible for determining insurance requirements for manufacturing, storage and use of materials
- B-ATFE – Responsible for background checks, Federal code enforcement and inspections to determine compliance and licensing
- OSHA – Responsible for workplace safety and safety regulations concerning workplace and employees
- EPA – Responsible for waste, waste water and other environmental concerns around the manufacturing and use of products
- DOT – Responsible for the transportation of finished products and components such as Oxidizers
- External Regulatory and Industry Standards – Work on standards for safe use, transportation and industry best practices
I’m sure we missed a few on the list as the regulatory environment is constantly evolving and changing as laws and codes change. Compliance with these codes is required to ensure the safe and legal manufacturing of these products. However many of the functions overlap between these agencies and it’s not uncommon to have multiple safety inspections or multiple inventory inspections from different agencies that is considered heavily burdensome to businesses. It should also be noted that fines and regulatory penalties range from $1000 to well over a million dollars depending on the infraction and seriousness of the violation(s).
Specialized Equipment for Manufacture
When manufacturing Black Powder(s), it is required that machinery not be able to create sparks so typically machinery is made of wood and brass fittings and is usually powered by belt driven systems with motors that could create sparks being well clear of the machinery. There are other factors such as the dust created that must be captured and processed to minimize the risk of explosion. There are also many different methods such as wet and dry manufacturing with varying risk associated with each process. The specialized equipment must be maintained and is expensive to operate due to the requirements to try and keep down cost. It should be noted that a certain amount of powder manufactured will be lost to explosion or may not meet the requirements with the military specifications but some of these lower grade powders can be sold on the commercial market for other purposes.
In short the process, supply chain and heavy regulatory environment is causing companies to not want to help solve the problem(s) associated with manufacturing and the continued shortage of powders.
Ukraine and Other Issues
In short, the environment for manufacturing is not good and is a continued paid point for commercial and military use of powders. It is estimated that the amount of weaponry sent to Ukraine will cause a 10-20 year backlog in our ability to recover the stockpiles shipped to Ukraine. This causes issues for national security and raises the price of ammunition both for the military and for civilian sporting and target shooting. The replacement of materials used is a major issue as the production of black powder is at a set rate but wars, conflict, external demands and other needs, there doesn’t seem to be an easy fix for this issue. The war in Israel also has an impact on Potassium Nitrate as one of the larger suppliers is located in Israel and they will also need to replenish their stockpiles after the war in Gaza. This issue like many others is compounding but one thing is for sure. Government regulations are a huge barrier. It would be smart for the Government to find creative ways to solve these issues and get more manufacturing in the United States. It’s critical for national security but also will help to keep the price of materials down in the future for civilian sporting use as well. Until some of these issues are resolved, we may never get any other manufacturers even though the know how and technical ability exist within the US industrial base.
