Addressing the Threat to the Domestic Supply Chain From Reliance on Critical Minerals From Foreign Adversaries and Supporting the Domestic Mining and Processing Industries
This is an Executive Order issued by President Donald J. Trump, signed September 30, 2020 (with signing noted as 9/29/2020 in some records), declaring a national emergency to reduce the United States’ reliance on critical minerals sourced from foreign adversaries, especially China. It recognizes that the U.S. currently imports a large share of several essential minerals (including rare earth elements, barite, gallium, and graphite) and that dependence on foreign suppliers can threaten national security, the economy, and military readiness. The order directs federal agencies to assess vulnerabilities, develop strategic plans, and use existing authorities to expand and protect domestic mining and processing capacity, while encouraging responsible mining practices and reducing ties to non-market suppliers. The EO creates a framework for interagency coordination, reporting, and policy actions aimed at building a secure, resilient, and domestic critical minerals supply chain. It contemplates potential measures such as tariffs or quotas if warranted, expands the role of financing and regulatory tools (loan guarantees, advanced automotive manufacturing programs, and permitting) to support domestic production and processing, and seeks to update the federal approach over time (including updating the list of critical minerals and leveraging historic mining sites). It also emphasizes international coordination and responsible sourcing while preserving agency authorities and the budget process.
Key Points
- 1National emergency to reduce reliance on critical minerals from foreign adversaries (notably China) and to secure domestic mining and processing capacity; highlights vulnerability of minerals like rare earths, barite, gallium, graphite, and other identified minerals.
- 2Mandated interagency investigations and ongoing reporting: a 60-day initial interagency assessment with potential recommendations (including tariffs/quotas or other import restrictions), plus ongoing 180-day updates to the President on the threat and necessary actions; periodic reports to Congress.
- 3Policy goal to build secure, domestic supply chains for minerals: expand mining and processing capabilities, diversify supply sources, and promote responsible mining practices to avoid human rights and environmental harms abroad; reduce dependence on adversaries.
- 4Use of financing and regulatory tools to support domestic production: guidance to expand eligibility for loan guarantees (Title XVII of the Energy Policy Act of 2005) and Advanced Technology Vehicles Manufacturing (ATVM) funding for projects that bolster domestic mineral supply chains; accelerate permitting and public project approvals; consider reuse of historic mining sites and coal waste areas for mineral recovery.
- 5International coordination and updating the minerals list: Department of State and USTR to propose options to reduce vulnerability and build resilient supply chains with partners; amendment to update the critical minerals list periodically; cross-agency collaboration to map, extract, process, and recycle minerals effectively.