U.S. President Donald Trump is set to establish metal refining facilities on Pentagon military bases to reduce dependence on Chinese imports, according to a Reuters report. An executive order could be announced as soon as Wednesday, directing the Pentagon and federal agencies to develop domestic refining infrastructure for critical minerals and rare earths.
China dominates global production and processing of these essential materials, which are crucial for defense applications, including fighter jets, ships, and advanced weaponry. In response to trade tensions, China has imposed export controls, highlighting U.S. vulnerability in the supply chain.
Trump's push for domestic production aligns with his broader strategy to secure key commodities. His administration has already imposed tariffs on steel, aluminum, and copper to encourage local manufacturing and reduce reliance on imports. Critical minerals like cobalt and rare earth elements such as neodymium are vital in electronics, defense, and technology sectors.
Australia’s Lynas Rare Earths Ltd, the largest producer outside China, has gained strategic significance, with its stock rising amid fears of a supply crunch. As the U.S. accelerates efforts to secure a stable supply chain, the rare earth market is expected to experience increased volatility and investment interest.
Trump’s initiative underscores the geopolitical importance of critical minerals, positioning the U.S. to strengthen its industrial and military self-sufficiency.