President Donald Trump signed an executive order on Thursday that would help streamline U.S. production of critical minerals in an effort to reduce reliance on foreign entities.
The order is geared at ensuring a domestic supply of minerals used in energy production and for defense purposes and could also be used to help coal mining.
Trump’s executive order invokes the Defense Production Act to boost domestic mineral production capacity by providing finance, loans, and investment for new projects. The order will also establish a dedicated critical minerals fund. The finance will be provided through the U.S. International Development Finance Corporation in collaboration with the Department of Defense.
The order calls on the secretary of the interior to prioritize mineral production on federal land. The secretary of defense, secretary of energy, secretary of agriculture, and secretary of the interior will also help to identify additional sites for mineral production activities that can be permitted quickly.
Trump’s order aims to enhance national security, as many have raised concerns about relying on foreign entities for minerals. Critical minerals are used for emerging technologies both in the defense and energy sectors. For instance, uranium can be used as fuel in nuclear plants and weapons.
“The United States is 100% import-reliant on at least 15 critical minerals, and imports of nonfuel mineral commodities make up more than half of U.S. consumption,” the order said. It added that the U.S. metal mining industry has declined for years.
Minerals such as uranium, copper, potash, gold, and any other element, compound, or material determined to be critical by the National Energy Dominance Council, such as coal, will be covered by the order.
“Ramping up American mining is a national security imperative, and President Trump’s strong action recognizes that,” Rich Nolan, CEO of the National Mining Association, said in a statement.
“By encouraging streamlined and transparent permitting processes, combined with financing support to counter foreign market manipulation, we can finally challenge China’s mineral extortion. We applaud this strong action that confronts our mineral crisis head on and we look forward to working with the administration to ensure made in America increasingly means mined in America,” Nolan added.
