On March 20th, President Donald Trump signed an executive order (EO) invoking the Defence Production Act of 1950 (DPA), a law historically used during times of national crisis.
The EO grants the National Energy Dominance Council (NEDC) authority to expand the domestic mining output of critical minerals deemed essential for defence and national security. These include the twelve raw materials identified by NATO as ‘defence-critical’ – aluminium, cobalt, beryllium, gallium, germanium, graphite, lithium, manganese, platinum, rare earth elements, titanium, and tungsten, as well as non-essential materials such as copper, uranium, gold, and potash.
Reasons Behind the Order: Why Now?
China currently controls 60-90% of the world’s processing capacity for many of these minerals, which has enabled it to drive down global prices and outcompete other nations, reinforcing global dependence on its supply chain. In light of China’s recent restrictions on the export of gallium and germanium, the EO is seen as a key step in reducing U.S. reliance on foreign supply and production of these resources.
By stockpiling minerals essential for advanced defence technologies, munitions, and missile systems, the U.S. can address vulnerabilities in its resource network that pose a national security threat, and in turn, strengthen military readiness in times of geopolitical uncertainty.
Implications for the American Mining Industry
In recent decades, mining projects in the U.S. have faced significant delays due to bureaucracy and regulatory red tape. The EO marks a welcome milestone for the mining industry, an industry already dealing with declining employment rates in both the U.S. and Canada.
Not only will the EO allow the NEDC to expedite the reopening of domestic mines and fast-track approvals for projects currently in the pipeline, but it also directs the Department of the Interior to explore and prioritize mineral production on public lands with substantial reserves.
This two-pronged approach, combined with federal funding and investment incentives, will not only accelerate projects but also boost market confidence. Early signs of this are already visible, with MP Materials Corporation’s share price rising by 4.6% in the hours that immediately followed Trump’s announcement.
Implications for the Canadian Mining Industry
While the EO sets a 30-day deadline to implement most of its directives, identifying and developing viable mining sites can take years. In the meantime, the U.S. is likely to continue relying on Canada as a key partner in mineral production – a move that also supports global security for the U.S. and its Western allies. This strategy is further reinforced by the pending rare-earth deal with Ukraine.
Not only has Canada been formally recognised as a ‘domestic source’ for critical minerals under the DPA since 1992 – a status rooted in longstanding agreements like the Defence Production Sharing Agreement (DPSA) – Canada’s reputation for upholding strong environmental, social and governance (ESG) safeguards also makes it a safe, reliable alternative to higher-risk nations. In a climate of global trade uncertainty and rising resource nationalism, stable allies like Canada are more valuable than ever.
This DPA designation allows Canadian mining companies to receive U.S. funding and support for critical mineral production, so long as they contribute to U.S. defence or clean energy needs. For instance, in late 2024, the Department of Defence (DoD) established a $20 million cobalt processing facility in Ontario and awarded $15.8 million to Fireweed Metals Corporation to develop a tungsten mine in Yukon.
Moreover, Canada’s own $4 billion Critical Minerals Strategy positions the nation as a leading global supplier for minerals such as cobalt, graphite, lithium, and nickel, while prioritizing sustainability, economic growth, Indigenous partnerships, and environmental stewardship.
Trade Tensions: Risk and Resilience
Trump’s recent tariffs on Canadian products like steel and automobiles have certainly created political friction and caused industry concern. Despite these challenges, at Bedford we’re observing some positive outcomes of the tariffs. Mining executives we’ve spoken to – including CEOs and Chairs – are reporting an increase in engagement from government entities and stakeholder groups, including community and Indigenous leaders, to accelerate critical mineral projects. Additionally, capital sources and strategic partners have shown greater interest in collaborations and potential acquisitions.
That said, some executives remain cautious, currently prioritizing partnerships outside the U.S. to mitigate risks from potential shifts in trade policy.
Conclusion: A Defining Moment for North American Mining
Trump’s activation of the DPA marks more than just a policy shift, it signals a long-term recalibration of how the U.S. secures its critical mineral supply chains. As Canada positions itself as a stable partner with shared security goals, long-term success will hinge on more than just political alignment.
For the Canadian mining industry, environmental responsibility, community engagement, and trade complexities remain key concerns, while the U.S. will largely be focusing on ramping up production to bolster its mineral security.
Aligning investment, innovation, and strategic partnerships with this new policy direction will be critical to seizing opportunities and shaping North America’s resource future. For mining leaders, one thing is clear: the time to act is now.
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