US President Donald Trump has invoked emergency powers to increase domestic production of critical minerals, aiming to reduce reliance on imports, particularly from China. The executive order, leveraging Cold War-era legislation, directs government agencies, including the Department of Defense, to prioritize mining projects and provide financial and technical support to enhance mineral production.
The move comes amid escalating trade tensions with China, which controls a significant portion of the global supply chain for critical minerals. Last year, China banned the sale of certain minerals to the US, forcing American companies to seek alternative sources for these vital materials.
"Our national and economic security are now acutely threatened by our reliance upon hostile foreign powers' mineral production," the executive 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 order also aims to expedite the permitting process for mining and processing projects, with a focus on federal lands. Despite having some critical mineral deposits, the US still depends heavily on foreign suppliers.
The move is part of Trump’s broader strategy to reduce trade imbalances, particularly with China and Canada, as his administration has imposed tariffs on a range of imports. Critical minerals are essential for the production of advanced technologies, including batteries and weapons systems.
Additionally, Trump has expressed interest in securing access to critical minerals in Ukraine, announcing that a deal will be signed "very shortly." The US is also in talks with the Democratic Republic of Congo over its mineral resources. Trump has previously suggested acquiring Greenland, which is rich in rare earths, further highlighting the administration's focus on securing global mineral supplies.