U.S. Delegates Defense Production Act Authority to Restrict Critical Mineral Exports

The White House announced on July 30, 2026, that President Donald J. Trump signed a Presidential Determination delegating authority under the Defense Production Act (DPA) to the Secretary of Commerce to impose potential export restrictions on recoverable critical minerals and materials (CMMs). The measure identifies these materials as essential industrial resources linked to national defense, military production and broader supply chain security.

The determination states that the United States has significant quantities of critical minerals and materials embedded in finished products, including permanent magnets and lithium-ion batteries. However, the country remains heavily dependent on imports for certain CMMs from foreign sources, creating potential exposure to long-term supply chain disruptions.

Under the delegated authority, the Secretary of Commerce may establish export restrictions on recoverable CMMs. The move focuses on materials that can be reclaimed from industrial waste and end-of-life products, including components used in advanced manufacturing and energy storage applications.

Critical minerals and materials are widely used across defense supply chains, supporting technologies such as high-performance military equipment, advanced defense systems and critical infrastructure. The administration said improving access to domestic supplies of these materials is intended to strengthen industrial resilience and reduce vulnerabilities associated with external supply dependencies.

The action follows a series of policy measures aimed at expanding U.S. mineral production and strengthening domestic supply chains. In March 2025, President Trump signed an executive order focused on increasing domestic mineral production, streamlining permitting processes and supporting national security objectives. A separate executive order issued in April 2025 sought to modernize defense acquisition processes and encourage innovation within the defense industrial base.

In January 2026, the administration issued another executive order directing negotiations with trading partners regarding imports of processed critical minerals and derivative products (PCMDPs). In July 2026, President Trump signed an additional executive order targeting defense supply chain security, including domestic access to critical materials and components required for advanced defense equipment.

The White House said the latest DPA action is intended to improve the reliability of critical mineral supply chains by providing additional tools to manage potential shortages and strengthen domestic industrial capacity.

Source: The White House

SUNSHINE Spotlight: The U.S. move highlights the growing role of critical mineral recycling and recovery as governments seek to secure alternative sources of materials essential for defense and advanced manufacturing supply chains.