Trump Orders Expansion of Critical Mineral Production... "Ukraine Mineral Agreement to Be Signed Soon"

U.S. President Donald Trump signed an executive order to significantly expand domestic production of minerals and rare earth elements and reduce dependence on foreign sources, Bloomberg reported on the 20th (local time).

The order utilizes the Defense Production Act (DPA) to support investments such as financing and loans in key mineral industries. It also encourages relevant departments to expedite permits required for mineral mining and processing projects and directs the Department of the Interior, which manages public lands, to prioritize mineral production.

President Trump stated, "We will dramatically increase the production of critical minerals and rare earth elements." He also said, "We will sign a rare earth minerals agreement with Ukraine very soon," adding, "We are doing very well with Ukraine and Russia (for peace negotiations). Ukraine's rare earth minerals hold tremendous value."

Donald Trump, President of the United States. Photo by Reuters-Yonhap News

The executive order defines critical minerals as uranium, copper, potassium carbonate, gold, and all elements, compounds, and materials designated by the Chair of the National Energy Dominance Council, with coal possibly included as well, a White House official told Bloomberg. The plan is to secure a stable and resilient domestic supply chain for critical minerals in cooperation with the private sector.

This is aimed at reducing dependence on China for critical minerals essential to national energy and security. According to the U.S. administration, the United States relies on imports for more than 15 critical minerals and depends on China for 70% of its rare earth imports. China has previously implemented export controls on germanium, gallium, antimony, and others.

President Trump has focused on securing critical minerals since his first term. In a recent congressional address earlier this month, he announced plans to take historic measures to dramatically expand production of critical minerals and rare earth elements. Interpretations suggest that his remarks about wanting to annex Canada as the 51st state of the U.S. and purchasing Greenland, a Danish territory, were also motivated by securing critical minerals. As part of peace negotiations to end the Russia-Ukraine war, he is demanding mineral agreements with Ukraine and has recently entered mineral resource negotiations with the Democratic Republic of the Congo.

The DPA was enacted during the Korean War to increase steel production. It grants the president the authority to direct companies to prioritize production of items necessary for national security and enables financial support for this purpose. The previous Joe Biden administration encouraged production of battery materials such as lithium, nickel, graphite, cobalt, and manganese through this law, while the first Trump administration used it to promote mask production during the COVID-19 pandemic.