U.S. President Donald Trump is preparing an executive order that would build metals refining facilities on Pentagon military bases, aiming to boost domestic production of critical minerals and counter China’s dominance in the sector, senior administration officials told Reuters.

The move is part of a broader strategy Trump outlined to Congress last week, promising to "dramatically expand" America’s rare earth and critical mineral supply. The Pentagon would work with federal agencies to set up processing facilities on its vast land holdings, avoiding regulatory hurdles faced by private companies.

The plan does not include creating a U.S. critical minerals stockpile or a "Buy American" mandate requiring vendors to source only from domestic mines. However, it seeks to fast-track permitting for mining projects and reclassify waste rock to extract valuable minerals from old mine sites.

Trump’s strategy reflects growing concerns that China could restrict exports of key minerals used in fighter jets, submarines, and advanced weaponry. The administration has also discussed appointing a critical minerals czar to coordinate efforts.

While the Clean Air Act and Clean Water Act would still apply to Pentagon sites, it remains unclear how Trump’s plan would navigate regulatory challenges that have stalled private sector processing projects.

Trump’s approach prioritizes refining over new mining operations, which could frustrate U.S. miners but benefit manufacturers dependent on metals processing. Major industry players, including Freeport-McMoRan, hope Trump will classify copper as a strategic mineral, unlocking tax credits worth $500 million annually.

The executive order could be signed as early as Wednesday, marking a major shift in U.S. resource policy amid ongoing trade tensions with China.

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