Key Takeaways from President Trump's Executive Order to Strengthen U.S. Mineral Production

President Donald Trump signed an executive order (EO) titled "Immediate Measures to Increase American Mineral Production" on March 20, 2025, aimed at boosting domestic production of critical minerals and reducing reliance on foreign sources. The EO's key goal is to stimulate job creation and economic growth by ensuring a stable, secure supply of minerals essential for defense, infrastructure, technology and other strategic sectors.

This order invokes the Defense Production Act (DPA), which grants broad presidential authority to direct industrial production for national security. It includes a series of ambitious initiatives to expedite permitting, open federal lands to mining projects and incentivize both private and public capital investments.

The success of the EO will depend on funding, coordination among federal agencies and collaboration with industry stakeholders.

Key Provisions of the Executive Order

• DPA. The EO leverages the DPA to accelerate domestic mineral production. However, existing critical mineral investments may create competition for resources, and the delegation of DPA loan authority to the U.S. International Development Finance Corporation (DFC) adds complexity.
• No Additional Funding. The EO does not allocate new funding. Congress must provide the resources needed to meet its ambitious goals.
• Inclusive Definition of "Minerals." The EO's flexible definition of "minerals" specifically includes those on the U.S. Geological Survey (USGS) Critical Minerals List, as well as uranium, copper, potash and gold and allows for the inclusion of other elements, compounds and materials not yet listed. Stakeholders are encouraged to lobby the National Energy Dominance Council (NEDC) for inclusion.
• Signaling Trump Administration Priorities. The EO underscores the administration's commitment to enhancing domestic mineral production and may be leveraged to advance projects delayed by permitting or funding issues and empower agencies to use unallocated funds to facilitate domestic mineral production to the maximum possible extent.

Permitting and Federal Lands: Streamlining Access

One of the EO's central provisions addresses the challenges posed by existing federal regulations that hinder domestic mining. The order seeks to expedite permitting for mineral production projects by identifying and prioritizing projects for immediate regulatory approval. Within 10 days of the EO's signing, relevant executive departments must submit a list of projects to the NEDC, which will then review and expedite the approval process. However, the legal weight of "immediate approval" is unclear, and projects will still face regulatory hurdles.

The EO also seeks to increase access to federal lands for mining by directing the U.S. Department of the Interior secretary to identify lands with valuable mineral deposits and provide a comprehensive list by March 30, 2025. To prioritize these lands and facilitate faster permitting to make them operational, relevant agencies must identify sites suitable for commercial development by April 20, 2025.

Additionally, the EO empowers the U.S. Department of Defense (DOD) and U.S. Department of Energy secretaries to enter into extended use leases with private entities for mineral development on identified lands. However, the exact mechanisms for these contracts remain unclear, and legal questions may arise.

While ambitious, these initiatives may face obstacles due to regulatory constraints and competing land-use priorities.

Mobilizing Capital for Domestic Mineral Production

The EO emphasizes the importance of accelerating the flow of private and public investments in U.S. mineral production to enhance domestic supply chains and reduce foreign dependence. It outlines a multifaceted strategy, with the DPA playing a leading role in supporting strategic mineral production.

In response to the national energy emergency outlined in EO 14156, "Declaring a National Energy Emergency," the president has waived certain statutory criteria that domestic mineral production projects must meet to be eligible for DPA funding.¹

The EO delegates authority under Section 303 of the DPA to the Defense secretary to prioritize and direct resources for domestic mineral production. The Industrial Base Analysis and Sustainment Program must recognize mineral production as a priority capability, ensuring mineral production efforts are integrated into national security strategies.

The EO also delegates DPA authority to the CEO of the DFC, enabling the agency to provide loans, loan guarantees and other financial instruments to support mineral production. The DOD and DFC are tasked with leveraging existing funding sources, including the Office of Strategic Capital and DPA, to establish a dedicated Mineral Production Fund for investments executed by the DFC.

In addition to the DPA, the EO outlines other federal initiatives to drive resources toward domestic mineral projects:

• The National Security Capital Forum (NSCF) and Strategic Investments. NSCF will connect private investors with viable mineral production projects, aligning private capital with national security priorities.
• Export-Import Bank (EXIM) and Supply Chain Resiliency. EXIM will provide guidance on financing tools to secure global mineral feedstock for U.S. processing. Its "Make More in America" initiative will also support domestic mineral production.
• Industry Coordination and Small Business Support. The Assistant Secretary of Defense for Industrial Base Policy will convene a meeting of mineral buyers within 30 days to identify market needs and encourage investment. The SBA will submit legislative recommendations by May 5, 2025, to enhance financing opportunities for small businesses in the mineral sector.

Challenges and Potential Pitfalls

Though the EO presents a proactive framework for enhancing U.S. mineral production, several challenges could hinder its full implementation. These include funding limitations, interagency coordination and legal concerns related to land use and regulatory compliance:

• Funding Limitations. The EO does not allocate new funds. Rather, it instructs DOD to reimburse key initiatives such as the Mineral Production Fund and DFC's activities with existing funding sources. Consequently, the burden falls on Congress to provide the necessary appropriations. Securing this funding will be crucial to turning the EO's plans into reality.
• Coordination Among Agencies. The EO mandates extensive coordination across multiple federal agencies, each with its own priorities, processes and regulatory frameworks. Balancing these factors with the EO's expedited goals may face logistical hurdles.
• Legal and Regulatory Hurdles. Although the EO aims to streamline permitting and expand land use for mineral projects, legal challenges related to environmental protections, indigenous land rights and other existing regulations may arise.
• Industry and Public Engagement. The EO's success depends on robust engagement with both the private sector and the public. Industry stakeholders must ensure that their concerns are addressed and that the EO's provisions align with the realities of the mining sector.

Holland & Knight Insights and Next Steps

The EO's call for agencies to solicit and fund projects that facilitate domestic mineral production is noteworthy because it comes at a time when the administration is taking a whole-of-government approach to scaling back federal investments.

Though the EO sets the framework for transforming U.S. mineral production, industry stakeholders will be critical in shaping its outcome. As part of the EO's implementation, the NEDC will issue a request for information (RFI) to gather feedback on regulatory bottlenecks. A specific timeline for this RFI is not provided; however, industry stakeholders should prepare to respond and highlight areas requiring regulatory reform.

The EO's flexible definition of "minerals" presents an opportunity for industry players to lobby the NEDC for the inclusion of additional elements, compounds or materials not yet listed in the EO, which already includes critical minerals on the USGS list, as well as uranium, copper, potash and gold. This provides a window for stakeholders to advocate for materials essential to their operations.

The SBA is tasked with submitting recommendations by May 5, 2025, to support small businesses in the mineral production sector. This could offer opportunities for collaboration with federal agencies to shape policies that facilitate private-sector involvement.

Finally, the EO directs the creation of the NSCF, which will connect private investors with U.S. mineral production projects. This initiative is designed to facilitate international investment and partnerships but will require coordination between the federal government and private entities. Industry players should prepare to engage in these forums and seek out financing opportunities that align with the goals of the EO.

For more information on how Holland & Knight's attorneys and advisors can advocate for critical minerals projects or assist with future funding and financing opportunities, please contact the authors.

Notes

¹ Section 303 of the DPA allows the president to waive the statutory requirements of 50 U.S.C. 4533(a)(1) through (6) when "action is necessary to avert an industrial resource or critical technology item shortfall that would severely impair national defense capability."

Information contained in this alert is for the general education and knowledge of our readers. It is not designed to be, and should not be used as, the sole source of information when analyzing and resolving a legal problem, and it should not be substituted for legal advice, which relies on a specific factual analysis. Moreover, the laws of each jurisdiction are different and are constantly changing. This information is not intended to create, and receipt of it does not constitute, an attorney-client relationship. If you have specific questions regarding a particular fact situation, we urge you to consult the authors of this publication, your Holland & Knight representative or other competent legal counsel.