Trump To Use Emergency Powers To Boost US Critical Minerals Industry
By Charles Kennedy of Oilprice.com
In a bid to wean the U.S. critical minerals supply chain off China, U.S. President Donald Trump plans to use emergency powers under the Defense Production Act to bolster domestic production and processing of these metals vital for the energy and defense industries, Reuters reports, citing a document to be published on Wednesday.
The Defense Production Act is a U.S. law that grants the President powers to ensure the nation’s defense by expanding and expediting the supply of materials and services from the domestic industrial base.
The White House is set to waive some legal requirements, including requirements for congressional approvals, to boost the U.S. critical minerals industry.
In March, President Trump invoked emergency powers to increase U.S. critical minerals production in a bid to reduce reliance on “hostile foreign powers’ mineral production.”
In an executive order, the U.S. President invoked the Defense Production Act (DPA), which is the main tool at a U.S. president’s disposal to shift economic activity toward national defense priorities.
“The United States possesses vast mineral resources that can create jobs, fuel prosperity, and significantly reduce our reliance on foreign nations,” the executive order says.
“The United States was once the world’s largest producer of lucrative minerals, but overbearing Federal regulation has eroded our Nation’s mineral production,” it adds.
The Trump Administration has made American production and refining of critical minerals and rare earths a top priority and is pursuing minerals deals with various countries to get access to the supply of the elements essential to the manufacturing of everything from smartphones and electric cars to F-35 fighter jets.
More so than the supply of raw minerals, the United States needs the refined products from these minerals that are ready to use in electronics, defense systems, and batteries.
China holds a dominant global position in the supply of critical minerals and rare earths, but its grip on the value chain – minerals processing and magnet production – is even tighter.
Tyler Durden Wed, 06/04/2025 – 22:35
Source: https://freedombunker.com/2025/06/04/trump-to-use-emergency-powers-to-boost-us-critical-minerals-industry/
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