President Donald Trump is preparing to waive key legal provisions under the Defense Production Act in a bid to accelerate domestic production of critical minerals and military technology inputs, according to a government document due to be published in the Federal Register.
The move is expected to bypass certain congressional oversight mechanisms, as the administration seeks to reposition the United States in the global supply chain for strategic raw materials.
The decision comes amid heightened tensions with China, which currently dominates the global processing and export of minerals essential for manufacturing electronics, semiconductors, renewable energy technologies, and advanced weaponry. Beijing recently imposed restrictions on exports of rare earth elements and other critical inputs, prompting renewed concerns in Washington over supply chain vulnerabilities.
The White House aims to use powers granted under the Defense Production Act (DPA), a Cold War-era statute originally introduced during the Korean War to ensure the availability of key industrial resources during periods of national emergency. Trump had already invoked the DPA in March to support the critical minerals sector, but existing legal constraints limited the scale and timeline of federal support.
Under current DPA regulations, projects with federal spending exceeding $50 million require congressional approval. Additionally, timelines for delivery of goods or services funded under the Act are typically capped at twelve months. These conditions have been viewed by the administration as impediments to rapid development in an increasingly contested geopolitical context.
By declaring an emergency, the president can legally circumvent these restrictions. According to the document seen ahead of publication, Trump intends to do precisely that, opening the door to larger and longer-term investments in mining, processing, and refining capacity within U.S. territory and allied countries. The waivers are set to be applied broadly across mineral-related projects supported by the Department of Defense and other relevant agencies.
The administration has not commented publicly on the forthcoming announcement. However, officials have signalled for several months that further executive measures were under consideration to counter what they describe as “strategic over-dependence” on China for critical materials. The U.S. Department of Commerce and Department of Energy have also undertaken assessments to identify high-priority supply chain gaps, many of which point to the need for domestic rare earth and lithium production.
While the previous administration under Joe Biden also used the DPA to fast-track industrial output—particularly for medical equipment during the COVID-19 pandemic—the Trump administration’s approach is more directly focused on national security and defence preparedness. The current geopolitical environment, shaped by trade disputes, technological competition, and deteriorating U.S.-China relations, has provided a new context for the expanded use of emergency powers.
China’s role as the leading global processor of rare earth elements, graphite, and other minerals has allowed it to exert considerable leverage over international markets. In response to tariffs and other trade restrictions imposed by Washington, Beijing has gradually tightened controls over outbound shipments, impacting producers and manufacturers across multiple sectors. Recent export halts have disrupted supply chains, leading to increased volatility in prices and delivery schedules.
Industry analysts suggest that even with emergency authorisations, the United States faces structural limitations in scaling up mining and processing within a short timeframe. Environmental permitting, community resistance to new extractive projects, and technical barriers to refining operations remain significant hurdles. Nonetheless, proponents of the waivers argue that removing bureaucratic constraints is a necessary step if the country is to meet growing demand for inputs used in everything from electric vehicles to missile guidance systems.
The administration’s policy also aligns with broader efforts to reindustrialise key sectors of the American economy. Federal funding is expected to target pilot projects, existing mines seeking expansion, and new ventures proposing to establish domestic refining capacity. Co-investment frameworks involving private capital and state governments may be used to maximise the impact of DPA-authorised spending.
Strategic coordination with allies is also likely to feature in future announcements. Australia and Canada, which host significant reserves of lithium, cobalt, and other critical minerals, have both signalled their readiness to deepen supply chain partnerships with the United States. Joint ventures and shared infrastructure projects are currently under discussion, though no formal multilateral agreements have yet been announced.
Trump’s decision to act unilaterally through emergency measures highlights the growing urgency in Washington to secure long-term access to materials considered vital for national defence and economic stability. With the publication of the waivers expected this week, attention will now turn to how swiftly the administration can translate legal authorisations into tangible industrial outcomes. Whether the move can effectively insulate the United States from future Chinese export controls remains to be seen.
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