(Bloomberg) — President Donald Trump is invoking emergency powers to boost the ability of the US to produce critical minerals — and potentially coal — as part of a broad effort to ramp up the development of domestic natural resources and make the country less reliant on foreign imports.
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An executive order signed by the president Thursday taps the Defense Production Act as part of an effort to provide financing, loans and other investment support to domestically process critical minerals and rare earth elements, according to a White House official. The US International Development Finance Corporation, working with the Department of Defense, will provide financing for new mineral production projects.
The order, which also encourages faster permitting for mining and processing projects and a directive for the Interior Department to prioritize mineral production on federal land, comes as a direct response to long-held concerns among the US and allies that China overwhelmingly controls the processing of some of the most important critical minerals.
These elements are used in a number of products from batteries to defense systems that are seen as crucial to the nation’s energy and security.
Shares of critical mineral miners in Australia and China declined on Friday. Australian lithium miner Liontown Resources Ltd. fell as much as 7.1%, while graphite producer Syrah Resources Ltd. tumbled 9.8%. China’s Tianqi Lithium Corp. and Ganfeng Lithium both fell. Some coal miners, including New Hope Corp Ltd. and Whitehaven Coal Ltd., were down nearly 4%.
In the US, Shares of MP Materials Corp. (MP), a rare earths miner, rose as much as 4.6% in after-hours trading. Peabody Energy Corp. (BTU), a coal producer, gained more than 2%.
Despite possessing some critical minerals, the US currently imports a significant amount, creating economic and security risks, according to the White House. The administration said the US is import-reliant on at least 15 critical minerals and that 70% of imports of rare earths come from China.
The Trump administration will also coordinate with the private sector to ensure a stable and resilient domestic supply chain for critical minerals, which under the executive order includes uranium, copper, potash, gold, as well as any other element, compound, or material as determined by the chair of the National Energy Dominance Council, the White House official said. That designation could also cover coal, the official added.
