U.S. Declares National Energy Emergency—Takes Action to Expand Domestic Mineral Production

In a landmark policy shift, President Donald Trump signed an Executive Order on March 20, 2025, that lays the foundation for a new era of American mineral independence. Citing a national energy emergency declared under Executive Order, the President has taken sweeping actions to expand and accelerate domestic production of critical minerals—including rare earth elements, lithium, cobalt, and graphite—vital to national defense, high-tech manufacturing, and clean energy infrastructure.

The full text of the Executive Order is available on the White House website:
Immediate Measures to Increase American Mineral Production

This action comes amid growing concerns about foreign reliance—particularly on China—for materials that underpin electric vehicles, semiconductors, batteries, and advanced defense technologies.

Declaring a National Emergency on Energy Security

The order invokes extraordinary presidential powers under the Defense Production Act (DPA). It delegates presidential authority to the Secretary of Defense, empowering the Department of Defense (DoD) to take the lead in revitalizing America’s mineral production infrastructure.

As part of this initiative:

• The Secretary of Defense may now leverage DPA Section 303 to support the domestic production and facilitation of strategic resources necessary for national security.
• Within 30 days, mineral production will be officially designated a priority industrial capability under the Industrial Base Analysis and Sustainment Program, ensuring it receives long-term institutional support and funding.

These measures represent the most aggressive federal intervention in the domestic mineral industry in decades.

Mobilizing Capital: A Dedicated Mineral Investment Fund

To further accelerate investment, the Executive Order instructs the CEO of the U.S. International Development Finance Corporation (DFC) and the Secretary of Defense to propose a plan within 30 days for the creation of a dedicated mineral and mineral production investment fund.

Key components of the initiative include:

• Use of Department of Defense investment authorities and the Office of Strategic Capital to fund domestic mineral projects.
• The DFC will be reimbursed for services through the Defense Production Act Fund, ensuring its lending and underwriting activities align with national security goals.
• The fund will only be implemented upon approval by the Secretary of Defense, the DFC CEO, and the National Security Advisor.

This fund is expected to unlock new capital for U.S.-based mining and processing facilities, while creating a long-term financial framework to support strategic mineral independence.

Export-Import Bank to Support Domestic and Global Mineral Access

Another significant provision of the order requires the Export-Import Bank of the United States (EXIM) to release new program guidance within 30 days. This guidance will:

• Expand financing tools under the Supply Chain Resiliency Initiative to secure U.S. offtake agreements from global mineral suppliers.
• Support domestic production through the Make More in America Initiative, enabling U.S. companies to invest in mineral processing and production with government-backed financial instruments.

These actions are designed to address both upstream (raw feedstock) and downstream (domestic processing) vulnerabilities in the U.S. critical minerals supply chain.

Strategic and Market Implications

As covered in CNBC’s recent report, this Executive Order has already caused ripples in financial markets, with critical mineral stocks and ETFs seeing an immediate rise in investor interest. Analysts expect continued policy-driven momentum in U.S.-based mining, battery manufacturing, and rare earth processing.

For industry stakeholders, this moment signals:

• A paradigm shift in federal industrial strategy, placing mineral production at the heart of national defense and economic policy
• Accelerated project approvals and funding for U.S. mining and refining ventures
• Heightened opportunities for public-private partnerships in mineral technology innovation

What It Means for the Rare Earth and Alloy Sector

At REalloys, we view this as a historic turning point. The coordinated federal response provides the clarity, capital, and commitment needed to rebuild the U.S. critical materials ecosystem.

We expect to see:

• A surge in rare earth alloy and magnet production capacity
• New investments in clean-tech minerals and high-performance alloys
• Stronger domestic value chains for battery metals, semiconductors, and defense materials
• A renewed emphasis on ethical, sustainable sourcing and processing practices

Key References:

White House: Immediate Measures to Increase American Mineral Production

CNBC: Trump signs order to increase critical mineral production in the U.S.