According to the White House, the order starts a process for the Department of the Interior to develop a program to use its powers under the Defence Production Act to fund mineral processing in the interest of national security.
The order aims to restore the American mining industry, accelerating the reopening or expansion of mines and processing plants. The US is heavily reliant on imports of several critical minerals that are critical to its national security and economic prosperity, despite the presence of significant sources of some of these minerals across the country. The order seeks to address that.
"We will put miners back to work," said Trump.
In 2019, Trump signed five presidential determinations finding that domestic production of rare earth elements and materials were essential to the national defence. Through this new order, more funding will be available to help mining projects, thereby strengthening the economy and improving our national security.
The executive order frames mining as having an integral strategic part to play in America's economic recovery in a post-coronavirus era.
Critical mineral project developers welcomed the move, saying the order was an important step towards addressing the US' supply chain vulnerabilities.
Pensana Rare Earths noted the order came the same day as the European Union launched the European Raw Materials Alliance aimed at strategic autonomy on raw materials such as rare earths.
"Both the US and the EU are concerned about the provenance and sustainability of rare earth magnet metal supply chain," Pensana chairman Paul Atherley said.
"With financial backing from the Angola Sovereign Wealth Fund and world class infrastructure we are in a very strong position to bring Longonjo online as one of the world's most sustainable suppliers on the magnet metal supply chain."
Pensana shares jumped 6% today to A$1.135 after an 8% jump yesterday. Ionic Rare Earths was a standout, rising 15%.