In a move aimed at strengthening America’s critical minerals and defense capabilities, documents obtained exclusively by Reuters reveal that President Trump plans to utilize the emergency powers granted under the Defense Production Act. The intention is to bypass several legal requirements—including mandatory Congressional funding approvals—in order to accelerate domestic production of key minerals necessary for both the economy and national security.
This initiative is viewed against the backdrop of China’s dominant position in the critical minerals arena. In response to the trade war launched by President Trump, Beijing recently employed export control measures on these strategic resources, prompting disruptions across the global supply chain.
In an interview with METALS 100, John Passalacqua, the CEO, and Director of First Phosphate Corp. (CSE: PHOS) (OTC: FRSPF) (FSE: KD0) talked about the LFP batteries market and the company’s project and the infrastructure in Quebec. First Phosphate is a mineral development company fully dedicated to extracting and purifying phosphate for the production of cathode active material for the LFP battery industry.
According to the pre-released documents, the planned executive order will invoke emergency exemptions, including the following measures:
This is not the first time the measure has been used. In March, Trump tapped into the Defense Production Act for the first time to boost domestic production of critical minerals.
John Paul Helveston, a professor at George Washington University, cautions that while increased investment in the mining sector may provide a long-term solution, it is unlikely to free the United States from its short-term reliance on China’s trade policies. In other words, maintaining a consistent trade relationship with China will remain essential for securing mineral supplies over the next 5 to 10 years.
China currently leads the global rare earth market, responsible for extracting 70% of the world’s rare earth elements and processing 90% of these materials—not only domestically but also for Myanmar and nearly half of the used rare earths in the U.S. Although countries like Australia and Brazil are ramping up their production, significant short-term replacements for Chinese outputs remain unlikely. Experts further note that the U.S. is approximately 20 years behind China in heavy rare earth refining technologies, meaning that completely eliminating reliance on China could take at least a decade.
In parallel, China has been tightening its hold on rare earth exports. Recently, the country officially launched a tracking system for the rare earth magnet industry, requiring manufacturers to submit detailed transaction data—including trade volumes and client identities—online. This move suggests that the export controls on rare earths may be here to stay, serving as an important strategic bargaining chip for Beijing.
