Trump uses DPA law to support domestic production and processing of rare earths, hoping to reduce dependence on China

Trump invokes DPA to support domestic rare earth production and processing, hoping to reduce dependence on China. Minerals on the list under this emergency order include uranium, copper, potash, gold, and possibly coal.

March 21, 2568 at 04.06:XNUMX a.m. Bloomberg reported that OhUS President Donald Trump signs executive order (Executive Order) Thursday to use the Defense Production Act's authority to accelerate domestic production and processing of rare and critical minerals, potentially including coal.

Under this order, the U.S. government will provide funding, loans, and other investment support for domestic mineral production projects, with the International Development Finance Corporation (DFC) working in partnership with the Department of Defense to promote new projects.

Trump's order is aimed explicitly at reducing U.S. reliance on foreign imports, particularly from China, which controls the processing of many rare earth minerals essential to modern energy systems, the battery industry and military technology.

The US government says the US currently imports a large amount of critical minerals and relies on China for 70% of its rare earth imports, while the country already has some resources that have not been fully invested.

The order also expedites permit approvals for mining and mineral processing and directs the Interior Department to prioritize mineral production on federal lands. Minerals on the list under the emergency order include uranium, copper, potash, gold, and other minerals or materials to be identified by the chairman of the National Energy Dominance Council, which could include coal.

Shares of rare earth miner MP Materials Corp. jumped 4.6% after the order was announced, while Peabody Energy Corp., the nation's largest coal producer, rose more than 2% in after-hours trading.

The Trump administration is also working with the private sector to establish a stable and resilient domestic rare earth supply chain, and is preparing to sign a rare earth deal with Ukraine soon. A previous congressional report also recommended establishing a rare earth reserve to hedge against global price volatility and reduce the risk of China's weaponization of the minerals.

refer : bloomberg.com

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