The United States is taking decisive action to reclaim sovereignty over its critical minerals supply chain. As part of a broader initiative to reduce dependence on China, President Donald Trump, invoking emergency powers under the Defense Production Act (DPA), has directed federal agencies to prioritize domestic mining and authorized the development of metals refining facilities on U.S. military installations. This bold move aims to re-establish American capability across the full value chain of critical minerals—beginning with processing and expanding into refining and manufacturing.
We believe this is a vital and timely step toward building a secure, resilient domestic critical minerals infrastructure, although we also believe that the order can go beyond using military bases. While these bases may offer available land, secure infrastructure, and fewer permitting hurdles, they are not always situated near the resource deposits themselves. Proximity remains a critical factor in building an efficient and cost-effective supply chain. Transporting materials long distances for separation is less ideal than co-locating processing infrastructure near mining sites. Still, it’s a good start.
gallium courtesy of the authors.
The Role of the Wartime Powers Act
The President’s invocation of the Defense Production Act is a potential game-changer for the industry. It enables the federal government to:
- Expedite permitting for critical mineral mining and processing projects.
- Provide financial incentives and loan guarantees for domestic development.
- Prioritize federal lands—including military bases—for refining facilities.
- Mobilize public-private collaboration to build sustainable supply chains.
This executive order clears a pathway to accelerate permitting, unlock federal resources, and support the development of refining technologies.
Why Processing Alone is Not Enough
While the move to establish processing facilities on military bases is an excellent first step, it is only one piece of the larger puzzle. The critical minerals supply chain includes five major stages: resourcing (mining), beneficiation, separation (processing), refining, and manufacturing. China currently dominates every stage, especially separations, refining, and finished goods production.
The U.S. currently produces roughly 15% of the world’s rare earth elements (REEs), but nearly all of it is shipped abroad—primarily to China—for processing, refining, and final manufacturing. If we continue to export concentrates without building out the full domestic supply chain, we will remain dependent on foreign powers, regardless of how much raw material we mine.
We must open new domestic mines, build processing and refining plants, and bring manufacturing back to U.S. soil—quickly and at scale. Without a full-spectrum approach, America’s critical minerals strategy will remain incomplete.
Policy Must Match Industry Commitment
It is also critical to recognize that a free-market economy alone cannot compete with China’s state-backed overcapacity. China has spent decades investing in and subsidizing its mineral sector, enabling it to overproduce, underprice, and dominate the global market. Without targeted government support, American companies will struggle to compete against these unfair practices.
To level the playing field, trade policy, international diplomacy, and global collaboration will be necessary. Environmental responsibility must also remain a pillar of this strategy. While China continues to devastate ecosystems like Inner Mongolia in pursuit of mineral dominance, the U.S. must show that sustainability and security can go hand in hand.
Critical minerals are essential to the U.S. economy and national security, serving key roles in technologies such as renewable energy systems, electric vehicles, and advanced defense systems. However, the supply chains for these materials are vulnerable to disruption due to global market concentration and limited domestic infrastructure. The DPA invocation enables the federal government to expedite permitting, provide financial incentives, prioritize federal lands for refining facilities, and foster public-private collaboration to build resilient supply chains.
The Pentagon’s control over vast tracts of land offers advantages for locating refining facilities, including secure infrastructure and reduced permitting challenges. However, proximity to resource deposits remains a key factor in building an efficient supply chain. Transporting materials over long distances for processing is less ideal than co-locating infrastructure near mining sites.
A comprehensive strategy is required to rebuild the domestic critical minerals industry. This includes targeted government support to counter China’s state-backed dominance in the sector, trade policy adjustments, international collaboration, and a commitment to environmental sustainability. By addressing these challenges holistically, the U.S. can secure its critical mineral supply chains while maintaining high environmental standards.
The invocation of the DPA represents a pivotal moment in advancing U.S. mineral independence, but must be accompanied by sustained efforts across all stages of the supply chain. Success will depend on continued collaboration between government and industry to ensure technological and military readiness in an increasingly competitive global landscape.
We commend the administration for taking bold steps under the Defense Production Act and call for continued momentum to ensure full-spectrum mineral sovereignty. The time for U.S. leadership in this sector is now. Together, we can help Make America Critical Mineral Independent Again.
Jim Hedrick is the President of US Critical Materials Corp and the former Rare Earth Commodity Specialist at the US Geological Survey (USGS). Mr. Hedrick’s career spans over 30 years evaluating geological formations and properties for the U.S. government.
Edward Cowle is the Executive Chairman of US Critical Materials. A Wall Street veteran, Ed has been starting, financing, and advising companies for more than 20 years. Ed is the Founder and Director of Laser Technology, In Zero Gravity Solutions, and Sports Engineering, Inc.
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