US President Donald Trump has signed an executive measure granting federal officials new authority to restrict exports of certain industrial waste materials that contain recoverable critical minerals and rare earth elements. The action, issued under the Defense Production Act (DPA), aims to strengthen domestic access to strategic raw materials and reinforce the country's critical mineral supply chain.
The latest policy reflects the administration's continued efforts to reduce the United States' dependence on imported critical minerals, particularly from China. These minerals are essential for manufacturing advanced technologies, including electric vehicles, defense equipment, renewable energy systems, semiconductors, and consumer electronics.
Under the presidential determination, the US Commerce Secretary has the authority to introduce export restrictions on recoverable critical minerals and materials (CMMs) that can be extracted from industrial waste streams. According to the White House, significant quantities of valuable minerals remain embedded in finished products such as permanent magnets and lithium-ion batteries. Rather than allowing these materials to leave the country through waste exports, the government intends to encourage domestic recovery, recycling, and reuse.
The initiative represents another application of the Cold War-era Defense Production Act, which gives the president broad authority to support industries considered vital to national security. The legislation enables the federal government to direct private-sector companies to expand production or prioritize the supply of strategically important materials.
Trump has previously invoked the DPA to revive oil production along California's southern coast and support domestic coal-fired power generation. On his first day back in office, he also declared a national energy emergency, laying the foundation for broader use of the law to accelerate energy production and critical mineral development across the country.
The Defense Production Act has also been used by previous administrations. Former President Joe Biden relied on the same authority to strengthen domestic manufacturing of clean energy technologies, including solar panels, transformers, heat pumps, and fuel cells, highlighting bipartisan recognition of the importance of secure mineral supply chains.
Critical minerals and rare earth elements have attracted heightened global attention since China imposed export controls on several strategic materials last year, disrupting supply chains and creating uncertainty for manufacturers worldwide. Although the United States and China later reached a trade agreement that eased tariffs and relaxed some export restrictions, Washington continues to pursue alternative sources of critical minerals to enhance long-term supply security.
By promoting domestic recycling and limiting exports of mineral-rich industrial waste, the administration seeks to retain valuable resources within the country, strengthen industrial resilience, and support the expanding demand for advanced manufacturing and clean energy technologies.
Impact on Products
The policy is expected to improve the long-term availability of critical minerals recovered from lithium-ion batteries, permanent magnets, electronic waste, and other industrial scrap. Domestic recyclers, battery manufacturers, EV producers, defense contractors, and renewable energy equipment manufacturers could benefit from greater access to locally sourced raw materials. However, exporters of recyclable industrial waste may face tighter regulations and reduced overseas sales opportunities as more recoverable materials remain within the United States.
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