“Trump invoked wartime powers to increase US mineral productionDonald Trump has invoked a wartime law to increase US mineral production. This is being done to reduce dependence on China and
boost the domestic mining industry.”, — write: unn.ua
Details
On Thursday, the US President signed an executive order mandating the use of the Defense Production Act to mobilize industry and expand domestic mining for national security reasons.
The decree also instructs the US government to streamline permitting for projects and provide loans to stimulate the domestic mining industry.
Speaking at the White House on Thursday, Trump said the decree would “drastically increase the production of critical minerals and rare earth metals.”
The directive, which was foreshadowed in Trump’s address to Congress this month, is part of the president’s broad effort to “wean” the US off its dependence on China, which dominates the supply chains of many critical minerals that Western governments are seeking to obtain, the paper writes.
The Trump administration has already begun talks with the Democratic Republic of Congo about access to its minerals, and the president’s threats to take control of Greenland, the paper notes, are partly driven by a desire to gain access to its rare earth metals.
US and the DRC are negotiating a deal on mineral resources – FT08.03.2025, 11:00 • 17542 views
Trump said on Thursday that a frozen agreement on access to Ukrainian minerals would be signed “very soon.”
Trump announced “quick signing” of an agreement with Ukraine on rare earth minerals20.03.2025, 22:58 • 14786 views
“This is a big deal in this country, and as you know, we are also signing agreements in various places to unlock rare earth metals and minerals and more around the world, but specifically in Ukraine,” he said.
The US President spoke before signing a long-promised decree to “begin the elimination” of the US Department of Education.
Trump has launched the procedure to liquidate the US Department of Education21.03.2025, 02:34 • 10214 views
According to a White House official, an executive order was issued on Thursday instructing federal agencies to compile a list of projects awaiting approval “to expedite [their] review and advancement.” It will also allow them to prioritize federal lands for mining over other uses and provide loans for new projects through the US International Development Finance Corporation.
The announcement was welcomed by the US mining industry.
Addition
By invoking the Defense Production Act, passed in 1950 after the start of the Korean War, the US president can mobilize domestic industry to supply materials deemed critical to national defense.
Trump previously suggested the law was aimed at business, but has used it several times in his first term. After pressure from lawmakers and health officials, he used it to speed up the production of ventilators and personal protective equipment in March 2020 during the COVID-19 pandemic, but was criticized for not using his authority sooner.
Former US President Joe Biden has also invoked the law several times, including to address shortages of baby formula and increase mining of minerals critical to the transition to green energy.
China dominates many mineral supply chains. Even where China does not dominate metal production, it is often a major player in its processing – as is the case with lithium, which is used in batteries.
The US, as noted, is a major importer of metals, including copper and aluminum, which have a wide range of applications, from construction to energy and technology, as well as lesser-known ones such as rare earth metals, which are used in the defense and automotive sectors.
According to JPMorgan, the US imports about 80 percent of the aluminum it needs, most of which comes from Canada. According to ING Bank, the US also imports almost half of the copper it consumes.