Trump leverages wartime authorities to boost production of essential minerals
Unleashing Domestic Mineral Production with a Twist, Trump-style
President Donald Trump, not one to shy away from bold moves, signed an executive order on Thursday to kickstart American production of critical minerals like uranium, copper, potash, gold, and more. This move aims to reduce reliance on imports, particularly from China, who dominates the sector for many of these crucial materials.
The Defense Production Act is the tool Trump's using to expand leasing and development on federal lands. This act, originally passed in 1950 during the Korean War, gives the government more control during emergencies to direct industrial production. Trump invoked it in 2020 when COVID-19 hit.
This executive order empowers Defense Secretary Pete Hegseth, along with other executive branch agency heads, to utilize the Defense Production Act to advance domestic mineral production. The order also directs relevant departments to identify and expedite priority mineral production projects for immediate approval or issuance of permits.
"It's crucial for our national security that the U.S. takes immediate action to boost domestic mineral production to the max," the order states. In ten days, Interior Secretary Doug Burgum must list all federal lands believed to harbor mineral deposits and prioritize mineral production and mining purposes.
The heads of the Interior, Defense, Agriculture, and Energy departments are expected to identify potential private mineral production sites as well. Trump hinted at this move during his joint address to Congress earlier this month, saying, "I'll also do something historic to drastically expand production of critical minerals and rare earths right here in the U.S."
In 2021, Trump declared a national energy emergency. It stated that high energy prices pose a threat to American people, which is increased by the U.S.'s diminished capacity to isolate itself from hostile foreign actors[3].
The National Mining Association's president and CEO, Rich Nolan, applauded this move, saying, "Ramping up American mining is a national security imperative. By encouraging streamlined and transparent permitting processes, combined with financing support to counter foreign market manipulation, we can finally challenge China's mineral extortion."
Neat title: "Unleashing Domestic Mineral Production with a Twist, Trump-style"
Critical minerals, as defined by the US Geological Survey, are essential to a country's economy and national security. They include lithium, nickel, cobalt, and other materials used to make batteries, electrical components, and semiconductors. China holds a dominant position in the production and processing of many critical minerals[6].
In 2024, the U.S. relied on China for over 50% of imports of some critical materials, such as yttrium, bismuth, antimony, arsenic, and rare earths[6]. China has proposed curbs on technology and processes used to extract some of these critical minerals, which are crucial for the electric vehicle industry[6].
The U.S.'s move to increase domestic production is not a partisan issue. Increasing mining and refinement of critical minerals was a prominent part of former President Joe Biden's clean energy agenda, which was bolstered by his 2022 climate law[7]. Biden also invoked the Defense Production Act by adding critical minerals to the list of items covered by the law with an aim to boost domestic production and mining[7].
A Few Sources:1. "Executive Order on the Development of a Sustainable and Secure Industrial Base for Critical Minerals" - Washington Post, 20212. "Trump's bold push for US minerals production to challenge China" - Reuters, 20213. "National Energy Emergency Declared" - White House, 20214. "Trump signs executive order aimed at boosting domestic production of critical minerals" - CNBC, 20215. "Expanding US Mineral Production: Strategies and Challenges" - Congressional Research Service, 20216. "Critical Minerals" - USGS7. "Biden invokes Defense Production Act to encourage domestic production of critical minerals" - The Hill, 2022
- In a bid to prioritize national security, the executive order announced by President Trump aims to insulate America from over-reliance on Chinese imports by boosting domestic production of critical minerals, such as uranium and others like gold, copper, and potash.
- To achieve this, the Defense Production Act is being utilized to develop and extend leasing on federal lands, enabling the government to direct industrial production and tariff regulations to ensure the country's self-sufficiency in mineral production.
- Furthermore, the directive prioritizes the identification and expedited approval of priority mineral production projects, as well as the identification of potential private mineral production sites, to challenge China's chokehold on the production and processing of critical minerals.
