Trump uses wartime powers to boost production of essential minerals
President Donald Trump took decisive action on Thursday, signing an executive order designed to boost American production of critical minerals such as uranium, copper, potash, and gold. By utilizing the Defense Production Act, the order aims to accelerate leasing and development on federal lands to enhance domestic mineral extraction.
The move addresses the United States’ dependence on mineral imports from countries like China, which currently dominates the global production and processing of essential materials. By leveraging the Defense Production Act, Secretary of Defense Pete Hegseth, in collaboration with other agency heads, has been granted the authority to oversee and promote domestic mineral production.
Originally enacted in response to production needs during the Korean War in 1950, the Defense Production Act allows the government to exercise greater control over industrial production in times of emergency. President Trump previously invoked this act at the beginning of the Covid-19 pandemic in 2020.
Additionally, the executive order mandates relevant department and agency heads to work with the chair of the National Energy Dominance Council to identify and accelerate priority mineral production projects for swift approval and permitting. The order emphasizes the urgent need for the US to boost domestic mineral production to enhance national security.
Within a 10-day period, Interior Secretary Doug Burgum is tasked with presenting a list of federal lands known to harbor mineral deposits and reserves. The order calls for prioritizing mineral production and mining-related activities as the primary land uses in these areas while adhering to applicable laws.
Furthermore, the heads of the Interior, Defense, Agriculture, and Energy departments are instructed to pinpoint potential sites for private mineral production construction and operation. President Trump had foreshadowed this action during a joint address to Congress, highlighting his commitment to expanding critical mineral production and rare earths manufacturing in the US.
In support of Trump’s initiative, Rich Nolan, president and CEO of the National Mining Association, commended the efforts to bolster American mining as a vital national security measure. He stressed the importance of facilitating streamlined permitting processes and providing financial backing to counter foreign market manipulation, particularly targeting China’s dominance in critical mineral production.
Critical minerals, defined by the US Geological Survey (USGS), are vital to a country’s economy and national security, with fragile supply chains that are susceptible to disruptions. Key materials like lithium, nickel, and cobalt are crucial components in batteries, electronics, and semiconductors, prevalent in electric vehicles and consumer electronics.
China’s considerable hold on critical mineral production was underscored in 2024 when the US imported more than 50% of certain critical materials from China. The Chinese government’s proposed restrictions on technology and processes for extracting essential minerals used in the global electric vehicle industry have heightened concerns about supply chain vulnerabilities.
In response to trade tensions, China initiated export controls on strategic metals critical for defense and clean energy industrial applications. These measures were part of a retaliatory strategy against the US, emphasizing the importance of enhancing domestic critical mineral production to reduce reliance on foreign sources.
