Trump invokes defence law to tighten control over critical minerals
Washington, July 31
US President Donald Trump has invoked powers under the Defence Production Act to tighten control over recoverable critical minerals and materials, authorising the Commerce Department to impose export restrictions as part of a broader effort to strengthen domestic supply chains considered vital for national defence.
In a Presidential Determination issued to the Secretary of Commerce on Thursday, Trump declared that recoverable critical minerals and materials (CMMs) are "industrial resources necessary to promote the national defence" and warned that America's dependence on imported supplies has become an increasing security risk.
The determination states that the United States' "inadequate supply of CMMs poses an increasing risk to our national defence and security". It adds that the country "relies heavily on imports of certain CMMs from foreign sources, and this reliance threatens serious, sustained supply chain disruptions."
"It is imperative that the United States takes immediate action to secure the supply of recoverable CMMs," the memorandum says.
The White House said the President had delegated authority under the Defence Production Act to the Secretary of Commerce to institute export restrictions on recoverable critical minerals and materials.
The determination concludes that CMMs are "critical industrial resources necessary to promoting the national defence, particularly with regard to military production, industrial applications, and national security", said a White House fact sheet.
It also finds that the United States depends heavily on imports of certain critical materials from overseas, creating the risk of "serious and sustained supply chain disruptions".
The Presidential Determination authorises the Commerce Secretary to implement the order by issuing regulations, rules, guidance and procedures. The determination is also to be published in the Federal Register.
The administration said the United States already possesses substantial quantities of critical minerals embedded in finished products such as permanent magnets and lithium-ion batteries. Once those products reach the end of their life cycle, the materials can be reclaimed and recycled for industrial use.
The White House said these materials are "crucial to maintaining and strengthening the function, security, and resilience of critical infrastructure sectors".
It added that critical minerals are "pervasive in defence supply chains and are key inputs in advanced defence systems that support technological superiority, operational readiness, and an array of high-performance military equipment".
Under Section 101 of the Defence Production Act, Trump determined that recoverable CMMs are "scarce and critical materials essential to the national defence".
He further found that national defence requirements for these materials "cannot otherwise be met without creating a significant dislocation of the normal distribution of such material in the civilian market to such a degree as to create appreciable hardship".
The White House said the latest move builds on a series of executive actions aimed at rebuilding America's industrial base and strengthening defence manufacturing.
It noted that Trump signed an executive order in March 2025 to increase American mineral production, streamline permitting and enhance national security. In April 2025, he signed another order to modernise defence acquisitions and spur innovation across the defence industrial base.
Critical minerals have become a central issue in global strategic competition as governments seek reliable supplies for defence technologies, electric vehicles, renewable energy systems, semiconductors and advanced manufacturing. China dominates a significant portion of global processing and refining capacity for several rare earth elements and other critical minerals, prompting the United States and its allies to diversify supply chains.
The United States has increasingly used executive authority, investment incentives and trade measures to encourage domestic mining, processing, recycling and stockpiling of critical minerals. The latest determination places greater emphasis on recovering valuable materials from end-of-life products and industrial waste as Washington seeks to reduce dependence on overseas sources while strengthening long-term national security and industrial resilience.
— IANS
Reader Comments
As an Indian student studying in the US, this is concerning. Our countries need to work together on critical minerals, not just protect our own interests. India has huge reserves of rare earths too - this could be a great opportunity for India-US partnership if handled properly.
This is actually good news for India in the long run! If the US reduces its dependence on China for critical minerals, it opens up more opportunities for India to export our rare earth resources. Time for our government to step up its mining and processing game. 🇮🇳
Classic American protectionism. They talk about free trade until it doesn't benefit them. India has been blamed for trade deficits, but now the US is doing exactly what they criticize others for. Bhagwan knows we need fair global trade rules, not just when it suits Washington. 😤
The real issue here is China's dominance in rare earth processing. India should use this moment to strengthen its own critical mineral sector. We have the resources, we just need the political will and investment. Make in India for defence and tech! 💪
While this might seem like just US domestic policy, it affects everyone. India's companies sourcing critical minerals from the US could face new hurdles. Also, the recycling angle is interesting - we should copy this approach for our own e-waste management. Waste nahi, wealth! 😊
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