Ensuring National Security and Economic Resilience Through Section 232 Actions on Processed Critical Minerals and Derivative Products

[Federal Register Volume 90, Number 74 (Friday, April 18, 2025)]

[Presidential Documents]

[Pages 16437-16440]

From the Federal Register Online via the Government Publishing Office [www.gpo.gov]

[FR Doc No: 2025-06836]

Presidential Documents

Federal Register / Vol. 90, No. 74 / Friday, April 18, 2025 /

Presidential Documents

[[Page 16437]]

Executive Order 14272 of April 15, 2025

Ensuring National Security and Economic

Resilience Through Section 232 Actions on Processed

Critical Minerals and Derivative Products

By the authority vested in me as President by the

Constitution and the laws of the United States of

America, including the Trade Expansion Act of 1962, as

amended (19 U.S.C. 1862) (the ``Act''), it is hereby

ordered:

Section 1. Policy. A strong national defense depends on

a robust economy and price stability, a resilient

manufacturing and defense industrial base, and secure

domestic supply chains. Critical minerals, including

rare earth elements, in the form of processed minerals

are essential raw materials and critical production

inputs required for economic and national security.

Critical mineral oxides, oxalates, salts, and metals

(processed critical minerals), as well as their

derivative products--the manufactured goods

incorporating them--are similarly foundational to

United States national security and defense.

uction

inputs required for economic and national security.

Critical mineral oxides, oxalates, salts, and metals

(processed critical minerals), as well as their

derivative products--the manufactured goods

incorporating them--are similarly foundational to

United States national security and defense.

But processed critical minerals and their derivative

products face significant global supply chain

vulnerabilities and market distortions due to reliance

on a small number of foreign suppliers. These

vulnerabilities and distortions have led to significant

United States import dependencies. The dependence of

the United States on imports and the vulnerability of

our supply chains raises the potential for risks to

national security, defense readiness, price stability,

and economic prosperity and resilience.

Processed critical minerals and their derivative

products are essential for economic security and

resilience because they underpin key industries, drive

technological innovation, and support critical

infrastructure vital for a modern American economy.

They are key building blocks of our manufacturing base

and foundational to sectors ranging from transportation

and energy to telecommunications and advanced

manufacturing. These economic sectors are, moreover,

foundational to America's national security.

infrastructure vital for a modern American economy.

They are key building blocks of our manufacturing base

and foundational to sectors ranging from transportation

and energy to telecommunications and advanced

manufacturing. These economic sectors are, moreover,

foundational to America's national security.

Processed critical minerals and their derivative

products are essential for national security because

they are foundational to military infrastructure,

energy infrastructure, and advanced defense systems and

technologies. They are key building blocks of our

defense industrial base and integral to applications

such as jet engines, missile guidance systems, advanced

computing, radar systems, advanced optics, and secure

communications equipment.

The United States manufacturing and defense industrial

bases remain dependent on foreign sources for processed

critical mineral products. Many of these foreign

sources are at risk of serious, sustained, and long-

term supply chain shocks. Should the United States lose

access to processed critical minerals from foreign

sources, the United States commercial and defense

manufacturing base for derivative products could face

significant shortages and an inability to meet demand.

Associated risks arise from a variety of factors.

First, global supply chains are prone to disruption

from geopolitical tensions, wars, natural disasters,

pandemics, and trade conflicts.

se

manufacturing base for derivative products could face

significant shortages and an inability to meet demand.

Associated risks arise from a variety of factors.

First, global supply chains are prone to disruption

from geopolitical tensions, wars, natural disasters,

pandemics, and trade conflicts.

Second, major global foreign producers of processed

critical minerals have engaged in widespread price

manipulation, overcapacity, arbitrary export

restrictions, and the exploitation of their supply

chain dominance to distort world markets and thereby

gain geopolitical and economic leverage over

[[Page 16438]]

the United States and other competitors that depend on

processed critical minerals to manufacture derivative

products essential to their economic and national

security and national defense. Therefore, the import

dependence of the United States on processed critical

minerals from foreign sources may pose a serious

national security risk to the United States economy and

defense preparedness.

Third, the risks arising from America's import

dependence on processed critical minerals also extend

to derivative products that are integral to the United

States economy and economic and national security. For

the United States to manufacture derivative products,

it must have ready access to an affordable, resilient,

and sustainable supply of processed critical minerals

on processed critical minerals also extend

to derivative products that are integral to the United

States economy and economic and national security. For

the United States to manufacture derivative products,

it must have ready access to an affordable, resilient,

and sustainable supply of processed critical minerals.

Simultaneously, a resilient and sustainable

manufacturing base for derivative products is vital to

creating a stable demand base for processed critical

minerals. Both must coexist to ensure economic

stability and national security.

Finally, overreliance on a small number of geographic

regions amplifies the risks posed by geopolitical

instability and regional disruptions.

In light of the above risks and realities, an

investigation under section 232 of the Act (section

232) is necessary to determine whether imports of

processed critical minerals and their derivative

products threaten to impair national security.

Sec. 2. Definitions. As used in this order:

(a) The term ``critical minerals'' means those

minerals included in the ``Critical Minerals List''

published by the United States Geological Survey (USGS)

pursuant to section 7002(c) of the Energy Act of 2020

(30 U.S.C. 1606) at 87 FR 10381, or any subsequent such

list. The term ``critical minerals'' also includes

uranium.

nerals'' means those

minerals included in the ``Critical Minerals List''

published by the United States Geological Survey (USGS)

pursuant to section 7002(c) of the Energy Act of 2020

(30 U.S.C. 1606) at 87 FR 10381, or any subsequent such

list. The term ``critical minerals'' also includes

uranium.

(b) The term ``rare earth elements'' means the 17

elements identified as rare earth elements by the

Department of Energy (DOE) in the April 2020

publication titled ``Critical Materials Rare Earths

Supply Chain.'' The term also includes any additional

elements that either the USGS or DOE determines in any

subsequent official report or publication should be

considered rare earth elements.

(c) The term ``processed critical minerals'' refers

to critical minerals that have undergone the activities

that occur after critical mineral ore is extracted from

a mine up through its conversion into a metal, metal

powder or a master alloy. These activities specifically

occur beginning from the point at which ores are

converted into oxide concentrates; separated into

oxides; and converted into metals, metal powders, and

master alloys.

ore is extracted from

a mine up through its conversion into a metal, metal

powder or a master alloy. These activities specifically

occur beginning from the point at which ores are

converted into oxide concentrates; separated into

oxides; and converted into metals, metal powders, and

master alloys.

(d) The term ``derivative products'' includes all

goods that incorporate processed critical minerals as

inputs. These goods include semi-finished goods (such

as semiconductor wafers, anodes, and cathodes) as well

as final products (such as permanent magnets, motors,

electric vehicles, batteries, smartphones,

microprocessors, radar systems, wind turbines and their

components, and advanced optical devices).

Sec. 3. Section 232 Investigation. (a) The Secretary of

Commerce shall initiate an investigation under section

232 to determine the effects on national security of

imports of processed critical minerals and their

derivative products.

(b) In conducting the investigation described in

subsection (a) of this section, the Secretary of

Commerce shall assess the factors set forth in 19

U.S.C. 1862(d), labeled ``Domestic production for

national defense; impact of foreign competition on

economic welfare of domestic industries,'' as well as

other relevant factors, including:

cribed in

subsection (a) of this section, the Secretary of

Commerce shall assess the factors set forth in 19

U.S.C. 1862(d), labeled ``Domestic production for

national defense; impact of foreign competition on

economic welfare of domestic industries,'' as well as

other relevant factors, including:

(i) identification of United States imports of all processed critical

minerals and derivative products incorporating such processed critical

minerals;

(ii) the foreign sources by percent and volume of all processed critical

mineral imports and derivative product imports, the specific types of

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risks that may be associated with each source by country, and those source

countries deemed to be of significant risk;

(iii) an analysis of the distortive effects of the predatory economic,

pricing, and market manipulation strategies and practices used by countries

that process critical minerals that are exported to the United States,

including the distortive effects on domestic investment and the viability

of United States production, as well as an assessment of how such

strategies and practices permit such countries to maintain their control

over the critical minerals processing sector and distort United States

market prices for derivative products;

(iv) an analysis of the demand for processed critical minerals by

manufacturers of derivative products in the United States and globally,

including an assessment of the extent to which such manufacturers' demand

for processed critical minerals originates from countries identified under

subsections (b)(ii) and (b)(iii) of this section;

tort United States

market prices for derivative products;

(iv) an analysis of the demand for processed critical minerals by

manufacturers of derivative products in the United States and globally,

including an assessment of the extent to which such manufacturers' demand

for processed critical minerals originates from countries identified under

subsections (b)(ii) and (b)(iii) of this section;

(v) a review and risk assessment of global supply chains for processed

critical minerals and their derivative products;

(vi) an analysis of the current and potential capabilities of the United

States to process critical minerals and their derivative products; and

(vii) the dollar value of the current level of imports of all processed

critical minerals and derivative products by total value and country of

export.

(c) The Secretary of Commerce shall, consistent

with applicable law, proceed expeditiously in

conducting the investigation as follows:

(i) Within 90 days of the date of this order, the Secretary of Commerce

shall submit for internal review and comment a draft interim report to the

Secretary of the Treasury, the Secretary of Defense, the United States

Trade Representative, the Assistant to the President for Economic Policy,

and the Senior Counselor to the President for Trade and Manufacturing.

(ii) Comments to the Secretary of Commerce from the officials identified in

subsection (c)(i) of this section shall be provided within 15 days of

submission of the draft interim report described in subsection (c)(i) of

this section.

(iii) The Secretary of Commerce shall submit a final report and

recommendations to the President within 180 days of the investigation's

commencement.

(d) In considering whether to make recommendations

for action or inaction pursuant to section 232(b) of

the Act (19 U.S.C. 1862(b)), the Secretary of Commerce

shall consider:

(iii) The Secretary of Commerce shall submit a final report and

recommendations to the President within 180 days of the investigation's

commencement.

(d) In considering whether to make recommendations

for action or inaction pursuant to section 232(b) of

the Act (19 U.S.C. 1862(b)), the Secretary of Commerce

shall consider:

(i) the imposition of tariffs as well as other import restrictions and

their appropriate levels;

(ii) safeguards to avoid circumvention and any weakening of the section 232

measures;

(iii) policies to incentivize domestic production, processing, and

recycling; and

(iv) any additional measures that may be warranted to mitigate United

States national security risks, as appropriate, under the President's

authority pursuant to the International Emergency Economic Powers Act (50

U.S.C. 1701 et seq.).

Sec. 4. General Provisions. (a) Nothing in this order

shall be construed to impair or otherwise affect:

(i) the authority granted by law to an executive department or agency, or

the head thereof; or

(ii) the functions of the Director of the Office of Management and Budget

relating to budgetary, administrative, or legislative proposals.

(b) This order shall be implemented consistent with

applicable law and subject to the availability of

appropriations.

[[Page 16440]]

by law to an executive department or agency, or

the head thereof; or

(ii) the functions of the Director of the Office of Management and Budget

relating to budgetary, administrative, or legislative proposals.

(b) This order shall be implemented consistent with

applicable law and subject to the availability of

appropriations.

[[Page 16440]]

(c) This order is not intended to, and does not,

create any right or benefit, substantive or procedural,

enforceable at law or in equity by any party against

the United States, its departments, agencies, or

entities, its officers, employees, or agents, or any

other person.

(Presidential Sig.)

THE WHITE HOUSE,

April 15, 2025.

[FR Doc. 2025-06836

Filed 4-17-25; 8:45 am]

Billing code 3395-F4-P