White House Cuts Red Tape For U.S. Critical Minerals

The Trump Administration used the Defense Production Act as the basis for an executive order issued March 20, 2025 to sharply increase U.S. critical minerals production. Government agencies were given their marching orders, including directives to:

Screen applications for critical mineral mining and refining projects, looking for those that can be given immediate approval and expedited follow-up.
Solicit feedback from the industry to define any bottlenecks, then create strategies to expedite mining and refinement projects.
Review federal land usage to prioritize the leasing of lands that may be viable for critical minerals production.
Provide loans to businesses qualified to invest in approved projects.

This executive order came on the heels of the creation of the National Energy Dominance Council, chaired by Secretary of the Interior Doug Bergum, in mid-February. The Trump team appears to be in a big hurry. The pressure is on. There are good reasons for this, and the key driver may be China.

In December 2024, China banned the export of gallium, germanium, and antimony to the U.S. as a move in the escalating “chip war” over computer hardware. All three minerals are used for semiconductors, telecommunications, and defense, including hardware relevant to AI technologies. On April 4th, 2025, China placed seven Rare Earth Elements, also called REEs, under export restrictions, in response to tariffs levied by the United States. Up until this point China almost had a global monopoly on processing such critical minerals. This brought exports to a near-total halt. Now the conditions and protocols for Chinese companies to export REEs require new approvals from the Chinese government.

Additionally, Beijing placed 16 U.S. companies on its export control list, all but one of them in defense and aerospace. Those companies can no longer receive “dual-use goods,” including the restricted REEs. This has wreaked havoc on supply chains across the U.S. defense, energy, communications, and auto industries. As CNN reported, “magnets made of rare earths enable smaller, more efficient motors and generators used in smartphones, car and jet engines, and MRI machines. They are also essential components in a range of big-ticket weapons, from F-35 stealth fighter jets to nuclear-powered attack submarines.”

Building a reliable mineral supply chain has long been a declared priority for Washington. But, to date, the U.S. still relies on China for a large portion of the supply and processing of these minerals. All of this gives Beijing undue control over the resources fueling several important industries, including the energy industry.

Existing Precedent For Using The Defense Production Act

That’s why Trump is calling on the powers of the DPA from 1950 to prioritize a domestic supply chain for processing critical minerals. The DPA was originally modeled after the World War II era War Powers Act, signed into law to give the president more control over domestic production of goods deemed to be in the interest of national defense. Some of the powers it granted were removed from the legislation when Congress allowed them to expire in 1953. But, overall, the DPA remains a powerful tool of the executive branch.

For example, in 2022, President Joe Biden used the DPA to invest in the production of solar photovoltaic technology. In the presidential determination document, Biden justified the move by stating that a resilient energy sector was needed for the critical infrastructure and the strength of the nation. Much of Trump’s argument for his move is the same, only instead of solar panels, Trump is thinking of weapons.

The Minerals Are Only Becoming More Critical

The industrial growth of the early 20th century, especially the buildup in arms production to meet the needs of World War I, caused the demand for critical minerals to substantially increase. By the time of World War II, the market had skyrocketed. America was not keeping pace with the rest of the world’s production by the end of the war. As such, the U.S. was forced to become an importer from producers like Bolivia and Zambia. Throughout subsequent decades, these minerals became essential in a plethora of sectors, including energy, electronics, aerospace, and more. They all need critical minerals to manufacture complex products. Many industries have reached the point where there is no way for them to operate without these minerals. In January 2025, Department of Defense officials issued a public statement that critical minerals are a part of “virtually every Defense Department system,” so maintaining a capable supply chain is essential to maintaining national security.

Beyond aerospace and defense uses, critical minerals are also essential for renewable energy ventures. A report by the International Energy Agency in 2021 found that almost every significant type of sustainable technology requires at least one critical mineral. It also forecasted spikes in demand for critical minerals that could possibly double the 2020 demand by 2030 and triple it by 2040.

Today, the reliance on foreign mineral production has become severe that nearly all American consumption of 10 different critical minerals is imported, while the majority of eight more minerals are also imported. Not only has the U.S. lost almost all control over its critical mineral sourcing, but China controls over 80% of the world’s rare earth processing capacity, according to the Bipartisan Policy Center, making the U.S. heavily dependent on its primary competitor to sustain its most vital sectors.

When Trump used an executive order to address this emergency, the U.S. environmental lobby did not lose time. Earthjustice criticized the order’s removal of red tape for domestic mining, with its senior legislative representative stating: “Mining operations on public lands already operate under a sweetheart deal, and today’s order will make it even easier for mines to sidestep environmental reviews and harm vulnerable communities, lands, and critical water sources.” The process for opening new mines has been the subject of so much regulation that it currently takes 29 years to open a new critical mineral mine, essentially killing the process of growing the American industry. To try to reduce this delay, the White House stipulated in March that part of the effort will include the removal of “overbearing federal regulation” that has slowed the permitting and licensing process for mines.

The Future Of Renewable Energy In The U.S.

Using the DPA to invest federal money in the critical mineral industry is a start towards revitalizing this key sector and protecting the future of American renewable energy resources. Republican leaders were quick to praise the executive order in a press statement from Representatives Doug LaMalfa (R-CA), Pete Stauber (R-MN), and Bruce Westerman (R-AR). There is still much left to be decided about how exactly DPA powers will affect critical mineral production in America, but Trump has primed the industry to improve supply chains and infrastructure over the coming years.

The Trump administration’s goal to address the “national energy emergency” (as described by the White House) is clearly high on the agenda. But invoking the DPA is only the beginning. Creating a domestic critical minerals supply chain will require a sustained effort to open mines and create critical mineral processing facilities. Only cooperation between the U.S. government and the private sector, perhaps in cooperation with America’s allies, will enable both the aerospace and renewable energy sector to secure a reliable supply of REEs. All things considered, this is a vital national security goal, one that it is indeed possible to achieve.