Highlights
- President Trump announces historic action to dramatically expand domestic critical minerals production
- Executive Order declares national energy emergency
- Aims to reduce foreign energy dependence and streamline infrastructure projects
- Strategic focus on lithium, cobalt, and rare earth elements
- Challenge global supply chain dynamics and enhance national security
At Tuesday night’s speech (opens in a new tab) to the US Congress, President Trump said that, “later this week, I will also take historic action to dramatically expand production of critical minerals and rare earths here in the USA.” As we await this historic action, it is helpful to review a related Executive Order (opens in a new tab) from January 20, 2025, declaring a national energy emergency. The definitions in the order remind us how critical minerals are recognized in statute: “The term ‘energy’ or ‘energy resources’ means crude oil, natural gas, lease condensates, natural gas liquids, refined petroleum products, uranium, coal, biofuels, geothermal heat, the kinetic movement of flowing water, and critical minerals, as defined by 30 U.S.C. 1606 (a)(3).” (Emphasis added.) Under that statute, “The term ‘critical mineral’ means any mineral, element, substance, or material designated as critical” under criteria set out in other subsections.
Call to loosen regulatory restrictions
The January energy emergency cites a lack of domestic energy production, refining, and transportation infrastructure. The order, which lays blame on policies enacted by the previous administration, calls for immediate federal intervention to expand and streamline energy development across the United States, with significant implications for energy markets, mineral industries, and international trade.
The Executive Order argues that current energy constraints are not only driving up costs for American consumers but also posing a direct threat to national security. It highlights how hostile foreign actors manipulate global commodity markets and weaponize U.S. reliance on imported energy. To counter these vulnerabilities, the order directs federal agencies to identify and use all lawful emergency authorities to increase domestic energy production, expedite infrastructure projects, and loosen regulatory restrictions.
Emergency approvals
One of the key provisions of the order is the invocation of emergency approvals, which directs federal agencies to fast-track energy projects, including leasing, siting, production, refining, and transportation. This includes the potential use of the Defense Production Act and federal eminent domain to ensure critical projects move forward without delay. Additionally, the Environmental Protection Agency is instructed to consider issuing emergency fuel waivers to facilitate the year-round sale of E15 gasoline, aiming to counteract any temporary gasoline shortages.
Lithium, cobalt, and rare earth elements
The implications for the critical minerals market are particularly noteworthy. The order underscores the need for a stable supply of minerals essential for energy production and next-generation technology. By prioritizing domestic resource extraction and reducing reliance on foreign suppliers, the U.S. government is poised to increase investments in mining operations, particularly for lithium, cobalt, and rare earth elements. This shift could disrupt global supply chains and influence pricing dynamics, potentially challenging China’s dominance in the rare earths market.
Need to streamline permitting
Infrastructure development is another major focus. The order calls for expedited completion of energy projects across the country, with a special emphasis on the West Coast, Northeast, and Alaska—regions identified as particularly vulnerable due to state and local policies that have historically restricted energy development. The Army Corps of Engineers is instructed to streamline environmental permitting under the Clean Water Act, while federal agencies are directed to minimize regulatory obstacles related to the Endangered Species Act to accelerate project approvals.
DOD plays its part, too
The Department of Defense is also brought into the equation, tasked with assessing vulnerabilities in energy supply chains that could impact national security operations. The order grants construction authority under Title 10 of the U.S. Code, allowing military resources to be deployed in support of energy infrastructure projects deemed critical to national defense.
Investors to see new opportunities?
From an economic standpoint, the order is likely to have wide-reaching effects on energy and commodity markets. By increasing domestic production and refining capacity, the U.S. could see a reduction in energy prices and decreased dependence on foreign imports. However, the potential environmental and legal battles that may arise in response to these aggressive measures could introduce uncertainty and volatility into the markets. Investors in fossil fuels and critical minerals may see renewed opportunities, while regulatory rollbacks could spark concerns among environmental groups and state governments.
Closing thoughts
Internationally, the order signals a shift toward energy dominance as a geopolitical strategy. The administration envisions the U.S. achieving energy independence and becoming a leading exporter to allied nations, thereby countering the influence of adversarial energy suppliers. If successful, this policy could alter global energy trade patterns and strengthen U.S. leverage in international negotiations. And if Tuesday’s promise is kept, we should be learning more about how the president intends to secure our minerals future later this week.
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