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Trump invokes wartime powers to increase production of critical minerals

An employee works on the production line of lithium-ion battery at a factory in November 2020 in Huaibei, Anhui province, China.
Wan Shanchao/VCG/Getty Images via CNN Newsource
March 21, 2025
Kit Maher, John Liu - CNN

(CNN) โ€” President Donald Trump signed an executive order on Thursday aimed at immediately increasing American production of critical minerals like uranium, copper, potash and gold by invoking the Defense Production Act to expand leasing and development on federal lands.

The move is intended to help the US reduce its reliance on imports from countries like China, which dominates the industry for production and processing of many of these important materials.

The order gives Defense Secretary Pete Hegseth, in consultation with other executive branch agency heads, the authority to use the Defense Production Act to facilitate the advancement of domestic mineral production.

Trump invokes wartime powers to increase production of critical minerals
Trump invokes wartime powers to increase production of critical minerals

The act, which was passed in 1950 in response to production needs during the Korean War, gives the government more control during emergencies to direct industrial production. Trump invoked it in 2020 at the onset of the Covid-19 pandemic.

The executive order also directs relevant department and agency heads, in coordination with the chair of the National Energy Dominance Council, to identify and expedite priority mineral production projects that can be โ€œimmediately approvedโ€ or immediately issued permits.

โ€œIt is imperative for our national security that the United States take immediate action to facilitate domestic mineral production to the maximum possible extent,โ€ the order states.

Within 10 days, Trump calls for Interior Secretary Doug Burgum to provide a list of all federal lands โ€œknown to hold mineral deposits and reservesโ€ and โ€œprioritize mineral production and mining related purposes as the primary land uses in these areas, consistent with applicable law.โ€

The order also asks the heads of the Interior, Defense, Agriculture and Energy departments to identify โ€œas many sites as possibleโ€ where the construction and operation of private mineral production could take place.

Trump previewed the action in his joint address to Congress earlier this month, saying, โ€œI will also take historic action to dramatically expand production of critical minerals and rare earths here in the USA.โ€

On Inauguration Day, Trump signed an executive order declaring a national energy emergency, which said an โ€œactive threat to the American people from high energy prices is exacerbated by our Nationโ€™s diminished capacity to insulate itself from hostile foreign actors.โ€

Challenging China

Rich Nolan, president and CEO of the National Mining Association, applauded Trumpโ€™s move, calling ramping up American mining a โ€œnational security imperative.โ€

โ€œBy encouraging streamlined and transparent permitting processes, combined with financing support to counter foreign market manipulation, we can finally challenge Chinaโ€™s mineral extortion,โ€ he said in a statement.

The US Geological Survey (USGS) defines critical minerals as ones that are essential to a countryโ€™s economy and national security, with supply chains that are vulnerable to disruption. They include lithium, nickel, cobalt and others materials used to make batteries, electrical components and semiconductors. Those parts are prevalent in electric vehicles, cell phones and other electronics.

China holds a dominant position in the production and processing of many critical minerals.

In 2024, the US relied on China for over 50% of its imports of some critical materials, such as yttrium, bismuth, antimony, arsenic, and rare earths, according to the USGS.

In January, China proposed curbs on the export of technology and processes used to extract minerals critical for the global electric vehicle industry, including metallic, gallium, and lithium. The plan has yet to be finalized.

As part of a barrage of measures retaliating against Trumpโ€™s broad-based 10% tariff on Chinese imports to the US, Beijing in February announced export controls on five metals and their related products, including tungsten, tellurium, bismuth, indium and molybdenum. They are critical for defense and clean energy industrial applications.

Late last year, China banned the export of gallium, germanium, antimony and other โ€œsuper hardโ€ materials crucial to produce semiconductors and other tech, to the US, in response to US semiconductor export controls imposed by the Biden administration.

On Thursday, Trump said he would be signing a deal โ€œvery shortlyโ€ on rare earth minerals with Ukraine.

That deal was what brought Ukrainian President Volodymyr Zelensky to the White House last month, but it wasnโ€™t signed after his tense Oval Office meeting with Trump and Vice President JD Vance.

Increasing mining and refinement of critical minerals is a bipartisan goal. It was a prominent part of former President Joe Bidenโ€™s clean energy agenda, boosted by the former presidentโ€™s 2022 climate law.

In 2022, Biden similarly invoked the Defense Production Act by adding critical minerals to the list of items covered by the law with an aim to kickstart domestic production and mining. Bidenโ€™s administration also approved a handful of mining projects for critical minerals.

The-CNN-Wire
โ„ข & ยฉ 2025 Cable News Network, Inc., a Warner Bros. Discovery Company. All rights reserved.

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