Trump is invoking emergency powers to boost critical minerals production

Trump is invoking emergency powers to boost the ability of the US to produce critical minerals.

Bloomberg with the report on Trump doing something to help out with the production of industry critical mineral production in the US. Trump adds that he’ll shortly be signing an agreement with Ukraine on rare earths.

Trump is invoking emergency powers to enhance the United States’ production of critical minerals, aiming to bolster national security, reduce reliance on foreign sources, and strengthen economic resilience. Critical minerals, such as rare earth elements, cobalt, lithium, and nickel, are essential components in advanced technologies, defence systems, and various industrial applications.​

Key Reasons for Invoking Emergency Powers:

1. National Security Concerns: Many U.S. military weapons and defense systems depend on minerals currently processed predominantly by foreign nations, particularly China. By increasing domestic production and refining capacities, the U.S. seeks to mitigate potential supply chain vulnerabilities that could be exploited by geopolitical adversaries. ​

2. Economic Competitiveness: Critical minerals are vital for manufacturing high-tech products, including smartphones, electric vehicles, and renewable energy technologies. Enhancing domestic production supports the growth of these sectors, reduces supply chain disruptions, and ensures that U.S. industries remain competitive globally. ​

3. Reducing Foreign Dependence: Currently, a significant portion of critical minerals is sourced from or processed by countries like China, which holds substantial control over the global supply chain. By boosting domestic capabilities, the U.S. aims to decrease its dependence on foreign entities, thereby enhancing economic and strategic autonomy. ​

4. Streamlining Regulatory Processes: Invoking emergency powers allows for the acceleration of regulatory approvals and the development of necessary infrastructure for mineral extraction and processing. This includes expediting permits and reducing bureaucratic delays that have historically hindered the timely development of mining projects.

5. Global Geopolitical Dynamics: Other nations are actively pursuing strategies to secure mineral resources, leading to a competitive international environment. For instance, China has increased state funding for domestic mineral exploration to achieve resource self-sufficiency amidst global competition. The U.S. aims to counterbalance such moves by strengthening its own mineral production capabilities. ​

By invoking these emergency powers, the Trump administration seeks to ensure that the United States has a secure, reliable, and independent supply of critical minerals, which is essential for both national defense and economic prosperity.

This article was written by Eamonn Sheridan at www.forexlive.com.