Trump Invokes Emergency Powers to Boost Domestic Critical Mineral Production
President Donald Trump has signed an executive order aimed at increasing the domestic production of critical minerals, including rare earth elements, uranium, copper, potash, and gold. The order invokes the Defense Production Act (DPA), a Cold War-era law, to provide financing, streamline permitting, and prioritize mining projects on federal lands. This move is part of a broader effort to reduce U.S. reliance on foreign imports, particularly from China, which dominates the global supply chain for many of these essential resources.
Trump uses emergency powers to expand domestic mineral production
The executive order directs federal agencies to fast-track permits for mining and processing projects and mandates the Department of the Interior to prioritize mineral production on federal lands. Within ten days, agencies must submit a list of pending mineral production projects that can be immediately approved. The initiative also emphasizes collaboration with the private sector to build a resilient domestic supply chain for critical minerals
The U.S. currently imports at least 70% of its rare earth elements from China and is heavily reliant on foreign sources for other critical minerals. The administration has identified this dependency as a national security risk. The executive order also establishes the National Energy Dominance Council, chaired by Interior Secretary Doug Burgum, to oversee the progress of domestic mineral security efforts.
Unpacking Trump’s New Critical Minerals Executive Order
The DPA will be used to inject public capital into domestic mining projects through mechanisms such as loans and investments from the U.S. International Development Finance Corporation and the Department of Defense. This approach aims to encourage private investment while addressing barriers such as lengthy permitting processes.
Donald Trump Uses Emergency Powers to Boost U.S. Critical Mineral Production
China’s recent export controls on materials like germanium and gallium have heightened concerns about supply chain vulnerabilities. The House Select Committee on China has recommended creating a strategic reserve of critical minerals to protect American producers from price volatility and supply disruptions
While the executive order has been praised for its focus on national security and economic growth, environmental groups have raised concerns about its potential impact on protected lands and ecosystems. Critics argue that prioritizing mining operations on federal lands could lead to significant environmental degradation
