Trump Invokes Defense Act to Boost U.S. Critical Minerals Amid China Tensions

U.S. President Donald Trump has invoked emergency powers under the Defense Production Act (DPA) to ramp up domestic production of critical minerals vital to electronics, electric vehicle batteries, and national security. The move aims to reduce America’s dependence on China, which dominates the global supply of minerals like lithium, nickel, and rare earth elements.

The executive order, signed Thursday, enables financing, loans, and investment support to jumpstart domestic mining and processing. It also directs federal agencies to identify U.S. mines for fast-track approval and assess which federal lands, including those under Pentagon control, can be used for mineral development.

Trump emphasized that excessive regulations have undermined U.S. mineral production, once a global leader. The U.S. currently produces minimal amounts of lithium and nickel, with its only cobalt mine shut down due to competition from China. Rare earth production is limited to a single mine, and there are only two copper smelters nationwide.

The move comes amid growing geopolitical tensions, as Beijing recently banned exports of gallium, germanium, and antimony to the U.S., sparking supply chain concerns. The executive order also encourages faster permitting processes and prioritizes mining projects on federal lands, including copper and gold, though not officially deemed “critical” by the U.S. Geological Survey.

Rich Nolan of the National Mining Association praised the order as a "national security imperative." Trump also announced an upcoming natural resources deal with Ukraine and launched a probe into new copper tariffs.

Former Newmont executive David Copley has been appointed to lead mining policy for the U.S. National Energy Dominance Council. The DPA, enacted in 1950, has previously been used by Presidents Biden and Truman to bolster industrial output in times of crisis.