President Donald Trump has invoked emergency powers to expand domestic production of critical minerals, citing economic and national security risks posed by reliance on foreign suppliers such as China.
An executive order signed Thursday directs federal agencies, including the Department of Defense and the Department of the Interior, to prioritise new mining and processing projects. It also enables the US International Development Finance Corporation to provide financing, loans and investment support under the Defence Production Act.
The administration said the order aims to accelerate permitting processes, support private-sector development, and facilitate mineral production on federal land. It comes amid growing concern over China’s dominance in the supply and processing of key raw materials used in batteries, advanced electronics and defence systems.
“Our national and economic security are now acutely threatened by our reliance upon hostile foreign powers’ mineral production,” the order states. “It is imperative for our national security that the United States take immediate action to facilitate domestic mineral production to the maximum possible extent.”
The White House said the US is currently reliant on imports for at least 15 critical minerals, with around 70% of its rare earth imports coming from China. The list of covered materials under the new order includes uranium, copper, potash, gold and potentially coal. Additional designations can be made by the chair of the National Energy Dominance Council.
The move follows recent Chinese export restrictions on materials such as germanium, gallium and antimony—part of a broader escalation in trade tensions. China last year banned the sale of certain critical minerals to the US, prompting American firms to seek alternative sources.
Trump said Thursday that agreements would soon be signed with Ukraine and other countries to help unlock global supply, adding that “lots of other things” were in progress. Talks are reportedly underway with the Democratic Republic of Congo, and Trump has previously floated the idea of acquiring Greenland for its rare earth deposits.
The US House Select Committee on China has recommended building a strategic reserve of critical minerals to help shield domestic industry from price shocks and reduce vulnerability to supply disruptions.
The Defence Production Act—originally enacted during the Korean War—has been used by previous administrations to stimulate domestic production. President Joe Biden used the same law to support battery materials and electric heat pump manufacturing, while Trump himself invoked it during the COVID-19 pandemic to ramp up mask production.
The new order marks a return to the “maximum pressure” doctrine, with the administration signalling that further measures may follow. While the physical impact of sanctions and financing initiatives may take time to materialise, analysts say the policy shift underscores growing US urgency to build a more resilient mineral supply chain.
