Pentagon land to be used for US critical mineral processing under Trump's new order

US President Donald Trump is planning to establish metals refining facilities on Pentagon military bases as part of a broader strategy to enhance domestic production of critical minerals and reduce China's control over the sector, according to two senior administration officials who spoke to Reuters.

The proposed move is expected to be included in an executive order that Trump could sign as soon as March 12, after he told Congress last week he would take "historic action" to significantly expand the production of critical minerals and rare earths within the US.

The executive order would direct the Pentagon to collaborate with other federal agencies to build processing facilities on its bases, sources revealed. This move is seen as part of Trump's broader push to ensure national security by addressing the reliance on Beijing for essential materials used in US military equipment. Fighter jets, submarines, bullets, and other weaponry are made using minerals processed by China, raising concerns about the country’s dominance in the global mineral supply chain.

One key component of the plan involves the appointment of a "critical minerals czar," a position that would serve to coordinate efforts across various federal agencies, similar to roles created by previous administrations to focus on other important issues, sources added. While the specifics of the plan are still under discussion, the administration’s proposal could change before the final order is signed.

The initiative comes amid concerns within the Trump administration about China's potential to restrict its exports of critical minerals in retaliation for US tariffs or other geopolitical tensions. Some officials were particularly alarmed by the prospect that China might leverage its control over these materials as a form of economic pressure, sources familiar with the matter explained. 

The Pentagon, which controls approximately 30 million acres of land, offers a practical solution for the processing of critical minerals. By utilizing military bases, the plan avoids the potential controversy of installing refining facilities on land managed by other federal departments or in local communities, which has often led to public opposition. This approach also eliminates the need to purchase land, streamlining the project’s execution.

While the plan emphasizes the importance of refining metals on US soil, it could potentially frustrate US miners who have long called for an overhaul of mine permitting processes. Instead of focusing on mine permitting, the plan addresses concerns from manufacturers who have criticized China’s dominant role in global metal processing. For example, China is the top global producer of 30 of the 50 minerals considered critical by the US Geological Survey.

However, the plan may face regulatory hurdles. US environmental laws, including the Clean Air Act and Clean Water Act, apply to Pentagon bases, and past attempts to develop processing projects have been hindered by these regulations. Trump had previously shown openness to alternative uses for federal lands, such as his pledge during his presidential campaign to open parts of federal land for large-scale housing projects with minimal regulation and taxes.

Despite pushing for greater domestic production, the executive order is not expected to include the creation of a US critical minerals stockpile, which some administration officials and members of the mining industry had advocated for. China stockpiles critical minerals, such as cobalt, which is essential for a range of technologies including missiles, aerospace parts, and communication systems. The U.S. government had considered stockpiling cobalt last year.

Moreover, the order will not require US agencies or vendors to use only American minerals, a "Buy American" mandate that some junior miners have argued is necessary to counter China's market influence. The executive order also does not aim to alter the federal mine permitting process, as such a change would require new legislation from Congress.

Instead, the order would seek to expand the FAST-41 permitting process for mines, which was initiated during Trump’s first term. This process is designed to streamline the approval of projects that are deemed vital to national security, such as the Hermosa zinc-manganese project in Arizona, which was fast-tracked under former President Joe Biden.

Another key aspect of the plan is to reclassify mine waste on federal land, allowing US miners to tap into piles of old waste rock that were once considered useless. This could help produce copper and other minerals more cheaply and efficiently than building new mines.

It remains unclear, however, whether Trump will declare copper a strategic mineral, which would enable US miners to benefit from a 10% production tax credit. Freeport-McMoRan, the largest copper miner in the US, has expressed hope that Trump will make this designation, as it could save the company $500 million annually.

By Tamilla Hasanova