Washington, DC: U.S. President Donald Trump on Thursday invoked emergency powers to enhance domestic production of critical minerals, aiming to reduce reliance on China, which dominates the global supply chain for these essential materials. The move aligns with Trump’s broader agenda to strengthen U.S. energy and minerals production, particularly as trade tensions escalate with China, Canada, and other major mineral suppliers.
Critical minerals such as lithium, nickel, and cobalt are vital components in various industries, particularly in electronics and the rapidly expanding electric vehicle sector. With demand projected to surge, securing a stable domestic supply has become a strategic priority for the U.S.
Trump signed an executive order invoking the Cold War-era Defense Production Act (DPA), authorizing financial incentives, loans, and investment support to bolster domestic mineral processing. The DPA grants the Pentagon broad authority to secure resources necessary for national defense, and the order effectively designates foreign reliance on critical minerals as a national security risk.
“The United States was once the world’s largest producer of lucrative minerals, but overbearing federal regulation has eroded our nation’s mineral production,” Trump stated in the order.
The directive instructs federal agencies to compile a list of U.S. mines that could be fast-tracked for approval and assess federal lands, including those under Pentagon control, that could be designated for mineral processing. Currently, the U.S. produces minimal lithium and nickel, and its only cobalt mine shut down last year due to competition from China. While the country has multiple copper mines, it operates only two smelters for refining the metal into industrial components. Additionally, the U.S. has just one rare earth mine, which is crucial for producing magnets used in various high-tech applications.
China’s grip on the sector tightened last year when Beijing imposed an export ban on gallium, germanium, and antimony to the U.S., forcing American manufacturers to seek alternative sources for these critical materials.
The executive order also aims to expedite mining and processing permits and directs the Interior Department to prioritize mineral production on federal land. It includes efforts to increase domestic production of copper and gold, though neither is classified as a critical mineral by the U.S. Geological Survey.
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The measure has been widely supported by U.S. mining companies, which have long argued that regulatory delays have hindered production. “Ramping up American mining is a national security imperative, and President Trump’s strong action recognizes that,” said Rich Nolan, head of the National Mining Association trade group.
The Defense Production Act, originally enacted in 1950, was historically used by President Harry Truman to accelerate steel production during the Korean War. More recently, former President Joe Biden also utilized the law to stimulate domestic critical mineral production, adding battery materials such as lithium, nickel, graphite, cobalt, and manganese to the list of resources eligible for federal funding. Biden’s initiative enabled companies to access $750 million in government support for mineral development.
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In another key development, former Newmont executive David Copley has been appointed to oversee mining policy within the U.S. National Energy Dominance Council, according to sources familiar with the matter. Copley is expected to play a leading role in shaping federal mining strategy.
Additionally, Trump announced that the U.S. will soon finalize a minerals and natural resources agreement with Ukraine. Last month, he also initiated an investigation into potential new tariffs on copper imports.
