US President Donald Trump has invoked emergency powers under the Defence Production Act to assert federal control over recoverable critical minerals and materials (CMMs), authorising the Commerce Department to impose export restrictions as part of a sweeping effort to secure domestic supply chains deemed essential to national security. The Presidential Determination, issued to the Secretary of Commerce on Thursday, 31 July, marks one of the most direct uses of wartime industrial law to address America's dependence on imported strategic materials.

What the Presidential Determination Says

The determination formally declares that recoverable critical minerals and materials are 'industrial resources necessary to promote the national defence' and that the United States' 'inadequate supply of CMMs poses an increasing risk to our national defence and security.' It further warns that heavy reliance on overseas imports 'threatens serious, sustained supply chain disruptions.'

Invoking Section 101 of the Defence Production Act, Trump found that recoverable CMMs are 'scarce and critical materials essential to the national defence' and that defence requirements for these materials 'cannot otherwise be met without creating a significant dislocation of the normal distribution of such material in the civilian market.' The determination is to be published in the Federal Register and empowers the Commerce Secretary to issue regulations, rules, guidance, and procedures to implement it.

The Recycling Angle: Reclaiming Materials from End-of-Life Products

A notable dimension of the order is its focus on recoverable minerals — those embedded in finished products such as permanent magnets and lithium-ion batteries that have reached the end of their life cycle. The administration argued these materials can be reclaimed and recycled for industrial use, positioning domestic recycling infrastructure as a strategic asset alongside new mining.

The White House described such materials as 'crucial to maintaining and strengthening the function, security, and resilience of critical infrastructure sectors' and 'key inputs in advanced defence systems that support technological superiority, operational readiness, and an array of high-performance military equipment.'

How This Fits Trump's Broader Minerals Strategy

The determination builds on a sequence of executive actions. In March 2025, Trump signed an executive order to increase American mineral production, streamline permitting, and enhance national security. In April 2025, a second order modernised defence acquisitions and spurred innovation across the defence industrial base. The latest move extends that framework by explicitly targeting the export side of the equation.

This comes amid intensifying global competition over critical mineral supply chains. China dominates a significant share of global processing and refining capacity for rare earth elements and other strategic materials, prompting the United States and its allies to accelerate efforts to diversify sourcing. Critical minerals are central inputs for defence technologies, electric vehicles, renewable energy systems, semiconductors, and advanced manufacturing.

What Happens Next

The Commerce Department now holds delegated authority to translate the Presidential Determination into binding export control regulations. Industry observers expect formal rulemaking to follow in the coming months, potentially affecting trade flows of materials including rare earths, lithium, cobalt, and other inputs in global supply chains. The administration has signalled that domestic mining, processing, recycling, and stockpiling will each form pillars of the long-term strategy.