Trump Issued an Order to Stimulate Production of Rare Earth Magnets

U.S. President Donald Trump on Monday ordered the U.S. Department of Defense to promote the production of large quantities of rare earth magnets for consumer electronics, military hardware and medical research, concerns that China would restrict exports.

Trump cited the 69-year-old Defense Production Act, once used to protect American steel-making capacity, to remedy what he called a "shortage" and to produce super-strong magnets made from rare earth minerals neodymium and samarium.

Trump issued a directive Monday that the ability of the United States to make magnets is "critical to national defense". Trump said that without action, U.S. industry "could not reasonably expect to provide production capacity for its products".

The Defense Production Act allows the President to prioritize contracts for materials, equipment and services in order to maintain or build domestic manufacturing capacity. It is used to force the purchase of semiconductor manufacturing equipment so that companies can produce military radiation-enhanced microelectronics - a niche market in which businesses may not invest themselves. It is also used to finance research and procurement projects in lithium-ion batteries, light ammunition and other technologies.

Trump’s June executive report said the United States needed a stable supply of key minerals to ensure its economic prosperity and defense. At that time, the Trump administration promised to take “unprecedented action” to ensure that the United States would not be disrupted by the supply of rare earths, a group of 17 minor but vital elements led by China.

• < Prev
• Next >