President Donald Trump has mobilized Cold War-era emergency powers to fast-track U.S. production of critical minerals, citing national security risks from reliance on foreign suppliers—notably China.
An executive order issued Thursday compels federal agencies to prioritize mining permits, streamline regulations, and fund projects for minerals essential to defense systems, renewable energy storage, and consumer electronics.
The directive invokes the 1950 Defense Production Act, historically used for wartime manufacturing, to counter China’s dominance in global mineral supply chains. Beijing controls over 80% of rare earth element processing and last year restricted exports of germanium and gallium—metals vital for semiconductors and missiles.
Under the order, the Interior Department must identify federal lands for expedited mineral extraction, while the Pentagon will fund feasibility studies for mining ventures. This follows a 2023 Commerce Department report warning that U.S. dependency on imported critical minerals leaves defense and tech sectors vulnerable to geopolitical disruptions.
Concurrently, the administration is negotiating mineral agreements with Ukraine for titanium reserves, the Democratic Republic of Congo for cobalt, and Greenland for rare earths. Talks with Canada and Australia to diversify sourcing are also underway.
Mining associations welcomed the move, with National Mining Council CEO Rich Nolan stating, “This ends decades of permitting paralysis.” Environmental groups criticized the potential bypassing of ecological reviews, while analysts noted that developing U.S. mines could take 7–10 years—far exceeding Trump’s current term.
The policy aligns with broader trade measures, including 25% tariffs on Chinese lithium-ion batteries and graphite set to take effect in 2025. China’s Foreign Ministry condemned the order as “economic coercion,” vowing “necessary countermeasures.”
With the U.S. importing over 50% of 30 critical minerals and 100% of 14 others, the push aims to reduce vulnerabilities. Pentagon contracts already support projects like MP Materials’ California rare earths mine and Lynas Rare Earths’ Texas processing facility.
As automakers race to secure battery materials for electric vehicles, the order could reshape supply chains. However, experts caution that without parallel recycling initiatives and workforce investments, the U.S. may struggle to rival China’s entrenched infrastructure. The White House has yet to detail funding levels or specific benchmarks for achieving mineral independence.
