According to Reuters, US President Trump signed an executive order on Thursday (March 20) citing the Cold War era Defense Production Act (DPA) aimed at increasing the production and processing capacity of critical minerals in the United States. This move aims to reduce the United States' dependence on China in key mineral supply chains and strengthen national security. Trump emphasized that the United States was once a leader in global mineral production, but excessive regulation has led to a decline in its position. This action aims to revitalize the US mining industry.

Application of National Defense Production Law

Trump cited the Defense Production Act, authorizing the Pentagon to provide funding, loans, and other investment support for the processing of critical minerals domestically. This law grants the government broad powers to ensure the supply of strategic resources necessary for national defense. Trump pointed out in the order that relying on foreign countries (especially potential hostile countries) to obtain key minerals poses a significant threat to national security.

Accelerate approval and resource development

The executive order requires federal agencies to develop a list of US mining sites that can be quickly approved and determine which federal lands (including those controlled by the Pentagon) can be used for mineral processing. In addition, the order encourages accelerating the approval process for mining and processing projects, and instructs the Department of the Interior to prioritize mineral extraction on federal land.

The Current Status and Challenges of Mining in the United States

The current key mineral production in the United States is extremely low, with scarce lithium and nickel production. The only cobalt mine was closed last year due to competition from Asian powers. Although there are multiple copper mines in the United States, only two refineries are capable of processing them. There is only one rare earth mine. Trump's order specifically mentions increasing copper and gold production, although these two metals are not listed as key minerals.

Expectations and new appointments in the mining industry

American miners have long complained that bureaucratic delays have hindered industry development and welcomed Trump's executive order. In addition, former corporate executive David Copley has been appointed as the mining portfolio supervisor for the National Energy Leadership Council, becoming the highest ranking official in the federal government to formulate mining policies.

summarize

Trump's executive order marks a direct challenge to the United States' dependence on Asian powers in key mineral fields. By using the Defense Production Act and accelerating resource development, the United States is attempting to reshape its mining supply chain to ensure national security and economic competitiveness. However, achieving this goal faces many challenges, including technological bottlenecks, environmental issues, and international competition.

In the short term, Trump's executive order indicates that the US government is taking active measures to reduce external dependence and strengthen national security, which may boost market confidence in US economic autonomy and long-term growth prospects, forming support for the US dollar in the short term. In the medium term, the trend of the US dollar will depend on the effectiveness of policy implementation and the actual increase in US mining capacity.