Addressing the Threat to the Domestic Supply Chain From Reliance on Critical Minerals From Foreign Adversaries and Supporting the Domestic Mining and Processing Industries, 62539-62544 [2020-22064]

Agencies

• Executive Office of the President

[Federal Register Volume 85, Number 193 (Monday, October 5, 2020)]
[Presidential Documents]
[Pages 62539-62544]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-22064]




                        Presidential Documents 



Federal Register / Vol. 85, No. 193 / Monday, October 5, 2020 / 
Presidential Documents

___________________________________________________________________

Title 3--
The President

[[Page 62539]]

                Executive Order 13953 of September 30, 2020

                
Addressing the Threat to the Domestic Supply 
                Chain From Reliance on Critical Minerals From Foreign 
                Adversaries and Supporting the Domestic Mining and 
                Processing Industries

                By the authority vested in me as President by the 
                Constitution and the laws of the United States of 
                America, including the International Emergency Economic 
                Powers Act (50 U.S.C. 1701 et seq.) (IEEPA), the 
                National Emergencies Act (50 U.S.C. 1601 et seq.) 
                (NEA), and section 301 of title 3, United States Code,

                I, DONALD J. TRUMP, President of the United States of 
                America, find that a strong America cannot be dependent 
                on imports from foreign adversaries for the critical 
                minerals that are increasingly necessary to maintain 
                our economic and military strength in the 21st century. 
                Because of the national importance of reliable access 
                to critical minerals, I signed Executive Order 13817 of 
                December 20, 2017 (A Federal Strategy To Ensure Secure 
                and Reliable Supplies of Critical Minerals), which 
                required the Secretary of the Interior to identify 
                critical minerals and made it the policy of the Federal 
                Government ``to reduce the Nation's vulnerability to 
                disruptions in the supply of critical minerals.'' 
                Pursuant to my order, the Secretary of the Interior 
                conducted a review with the assistance of other 
                executive departments and agencies (agencies) that 
                identified 35 minerals that (1) are ``essential to the 
                economic and national security of the United States,'' 
                (2) have supply chains that are ``vulnerable to 
                disruption,'' and (3) serve ``an essential function in 
                the manufacturing of a product, the absence of which 
                would have significant consequences for our economy or 
                our national security.''

                These critical minerals are necessary inputs for the 
                products our military, national infrastructure, and 
                economy depend on the most. Our country needs critical 
                minerals to make airplanes, computers, cell phones, 
                electricity generation and transmission systems, and 
                advanced electronics. Though these minerals are 
                indispensable to our country, we presently lack the 
                capacity to produce them in processed form in the 
                quantities we need. American producers depend on 
                foreign countries to supply and process them. For 31 of 
                the 35 critical minerals, the United States imports 
                more than half of its annual consumption. The United 
                States has no domestic production for 14 of the 
                critical minerals and is completely dependent on 
                imports to supply its demand. Whereas the United States 
                recognizes the continued importance of cooperation on 
                supply chain issues with international partners and 
                allies, in many cases, the aggressive economic 
                practices of certain non-market foreign producers of 
                critical minerals have destroyed vital mining and 
                manufacturing jobs in the United States.

                Our dependence on one country, the People's Republic of 
                China (China), for multiple critical minerals is 
                particularly concerning. The United States now imports 
                80 percent of its rare earth elements directly from 
                China, with portions of the remainder indirectly 
                sourced from China through other countries. In the 
                1980s, the United States produced more of these 
                elements than any other country in the world, but China 
                used aggressive economic practices to strategically 
                flood the global market for rare earth elements and 
                displace its competitors. Since gaining this advantage, 
                China has exploited its position in the rare earth 
                elements market by coercing industries that rely on 
                these elements to locate their facilities, intellectual 
                property,

[[Page 62540]]

                and technology in China. For instance, multiple 
                companies were forced to add factory capacity in China 
                after it suspended exports of processed rare earth 
                elements to Japan in 2010, threatening that country's 
                industrial and defense sectors and disrupting rare 
                earth elements prices worldwide.

                The United States also disproportionately depends on 
                foreign sources for barite. The United States imports 
                over 75 percent of the barite it consumes, and over 50 
                percent of its barite imports come from China. Barite 
                is of critical importance to the hydraulic fracturing 
                (``fracking'') industry, which is vital to the energy 
                independence of the United States. The United States 
                depends on foreign sources for 100 percent of its 
                gallium, with China producing around 95 percent of the 
                global supply. Gallium-based semiconductors are 
                indispensable for cellphones, blue and violet light-
                emitting diodes (LEDs), diode lasers, and fifth-
                generation (5G) telecommunications. Like for gallium, 
                the United States is 100 percent reliant on imports for 
                graphite, which is used to make advanced batteries for 
                cellphones, laptops, and hybrid and electric cars. 
                China produces over 60 percent of the world's graphite 
                and almost all of the world's production of high-purity 
                graphite needed for rechargeable batteries.

                For these and other critical minerals identified by the 
                Secretary of the Interior, we must reduce our 
                vulnerability to adverse foreign government action, 
                natural disaster, or other supply disruptions. Our 
                national security, foreign policy, and economy require 
                a consistent supply of each of these minerals.

                I therefore determine that our Nation's undue reliance 
                on critical minerals, in processed or unprocessed form, 
                from foreign adversaries constitutes an unusual and 
                extraordinary threat, which has its source in 
                substantial part outside the United States, to the 
                national security, foreign policy, and economy of the 
                United States. I hereby declare a national emergency to 
                deal with that threat.

                In addition, I find that the United States must broadly 
                enhance its mining and processing capacity, including 
                for minerals not identified as critical minerals and 
                not included within the national emergency declared in 
                this order. By expanding and strengthening domestic 
                mining and processing capacity today, we guard against 
                the possibility of supply chain disruptions and future 
                attempts by our adversaries or strategic competitors to 
                harm our economy and military readiness. Moreover, 
                additional domestic capacity will reduce United States 
                and global dependence on minerals produced in countries 
                that do not endorse and pursue appropriate minerals 
                supply chain standards, leading to human rights 
                violations, forced and child labor, violent conflict, 
                and health and environmental damage. Finally, a 
                stronger domestic mining and processing industry 
                fosters a healthier and faster-growing economy for the 
                United States. Mining and mineral processing provide 
                jobs to hundreds of thousands of Americans whose daily 
                work allows our country and the world to ``Buy 
                American'' for critical technology.

                I hereby determine and order:

                Section 1. (a) To address the national emergency 
                declared by this order, and pursuant to subsection 
                203(a)(1)(B) of IEEPA (50 U.S.C. 1702(a)(1)(B)), the 
                Secretary of the Interior, in consultation with the 
                Secretary of the Treasury, the Secretary of Defense, 
                the Secretary of Commerce, and the heads of other 
                agencies, as appropriate, shall investigate our 
                Nation's undue reliance on critical minerals, in 
                processed or unprocessed form, from foreign 
                adversaries. The Secretary of the Interior shall submit 
                a report to the President, through the Assistant to the 
                President for National Security Affairs, the Assistant 
                to the President for Economic Policy, and the Assistant 
                to the President for Trade and Manufacturing Policy, 
                within 60 days of the date of this order. That report 
                shall summarize any conclusions from this investigation 
                and recommend executive action, which may include the 
                imposition of tariffs or quotas, other import 
                restrictions against China and other non-market foreign 
                adversaries whose economic practices threaten to 
                undermine

[[Page 62541]]

                the health, growth, and resiliency of the United 
                States, or other appropriate action, consistent with 
                applicable law.

                    (b) By January 1, 2021, and every 180 days 
                thereafter, the Secretary of the Interior, in 
                consultation with the heads of other agencies, as 
                appropriate, shall inform the President of the state of 
                the threat posed by our Nation's reliance on critical 
                minerals, in processed or unprocessed form, from 
                foreign adversaries and recommend any additional 
                actions necessary to address that threat.
                    (c) The Secretary of the Interior, in consultation 
                with the heads of other agencies, as appropriate, is 
                hereby authorized to submit recurring and final reports 
                to the Congress on the national emergency declared in 
                this order, consistent with section 401(c) of the NEA 
                (50 U.S.C. 1641(c)) and section 204(c) of IEEPA (50 
                U.S.C. 1703(c)).

                Sec. 2. (a) It is the policy of the United States that 
                relevant agencies should, as appropriate and consistent 
                with applicable law, prioritize the expansion and 
                protection of the domestic supply chain for minerals 
                and the establishment of secure critical minerals 
                supply chains, and should direct agency resources to 
                this purpose, such that:

(i) the United States develops secure critical minerals supply chains that 
do not depend on resources or processing from foreign adversaries;

(ii) the United States establishes, expands, and strengthens commercially 
viable critical minerals mining and minerals processing capabilities; and

(iii) the United States develops globally competitive, substantial, and 
resilient domestic commercial supply chain capabilities for critical 
minerals mining and processing.

                    (b) Within 30 days of the date of this order, the 
                heads of all relevant agencies shall each submit a 
                report to the President, through the Director of the 
                Office of Management and Budget, the Assistant to the 
                President for National Security Affairs, and the 
                Assistant to the President for Economic Policy, that 
                identifies all legal authorities and appropriations 
                that the agency can use to meet the goals identified in 
                subsection (a) of this section.
                    (c) Within 60 days of the date of this order, the 
                heads of all relevant agencies shall each submit a 
                report as provided in subsection (b) of this section 
                that details the agency's strategy for using the legal 
                authorities and appropriations identified pursuant to 
                that subsection to meet the goals identified in 
                subsection (a) of this section. The report shall 
                explain how the agency's activities will be organized 
                and how it proposes to coordinate relevant activities 
                with other agencies.
                    (d) Within 60 days of the date of this order, the 
                Director of the Office of Science and Technology Policy 
                shall submit a report to the President, through the 
                Director of the Office of Management and Budget, the 
                Assistant to the President for National Security 
                Affairs, the Assistant to the President for Economic 
                Policy, and the Assistant to the President for Trade 
                and Manufacturing Policy, that describes the current 
                state of research and development activities undertaken 
                by the Federal Government that relate to the mapping, 
                extraction, processing, and use of minerals and that 
                identifies future research and development needs and 
                funding opportunities to strengthen domestic supply 
                chains for minerals.
                    (e) Within 45 days of the date of this order, the 
                Secretary of State, in consultation with the United 
                States Trade Representative, shall submit a report to 
                the President, through the Assistant to the President 
                for National Security Affairs, the Assistant to the 
                President for Economic Policy, and the Assistant to the 
                President for Trade and Manufacturing Policy, that 
                details existing and planned efforts and policy options 
                to:

(i) reduce the vulnerability of the United States to the disruption of 
critical mineral supply chains through cooperation and coordination with 
partners and allies, including the private sector;

[[Page 62542]]

(ii) build resilient critical mineral supply chains, including through 
initiatives to help allies build reliable critical mineral supply chains 
within their own territories;

(iii) promote responsible minerals sourcing, labor, and business practices; 
and

(iv) reduce the dependence of the United States on minerals produced using 
methods that do not adhere to responsible mining standards.

                Sec. 3. The Secretary of the Interior, in consultation 
                with the Secretary of Defense, shall consider whether 
                the authority delegated at section 306 of Executive 
                Order 13603 of March 16, 2012 (National Defense 
                Resources Preparedness) can be used to establish a 
                program to provide grants to procure or install 
                production equipment for the production and processing 
                of critical minerals in the United States.

                Sec. 4. (a) Within 30 days of the date of this order, 
                the Secretary of Energy shall develop and publish 
                guidance (and, as appropriate, shall revoke, revise, or 
                replace prior guidance, including loan solicitations) 
                clarifying the extent to which projects that support 
                domestic supply chains for minerals are eligible for 
                loan guarantees pursuant to Title XVII of the Energy 
                Policy Act of 2005, as amended (42 U.S.C. 16511 et 
                seq.) (``Title XVII''), and for funding awards and 
                loans pursuant to the Advanced Technology Vehicles 
                Manufacturing incentive program established by section 
                136 of the Energy Independence and Security Act of 
                2007, as amended (42 U.S.C. 17013) (``the ATVM 
                statute''). In developing such guidance, the Secretary:

(i) shall consider whether the relevant provisions of Title XVII can be 
interpreted in a manner that better promotes the expansion and protection 
of the domestic supply chain for minerals (including the development of new 
supply chains and the processing, remediation, and reuse of materials 
already in interstate commerce or otherwise available domestically);

(ii) shall examine the meaning of the terms ``avoid, reduce, or sequester'' 
and other key terms in section 16513(a) of title 42, United States Code, 
which provides that the Secretary ``may make guarantees under this section 
only for projects that--(1) avoid, reduce, or sequester air pollutants or 
anthropogenic emissions of greenhouse gases; and (2) employ new or 
significantly improved technologies as compared to commercial technologies 
in service in the United States at the time the guarantee is issued'';

(iii) shall consider whether relevant provisions of the ATVM statute may be 
interpreted in a manner that better promotes the expansion and protection 
of the domestic supply chain for minerals (including the development of new 
supply chains and the processing, remediation, and reuse of materials 
already in interstate commerce or otherwise available domestically), 
including in such consideration the application of these provisions to 
minerals determined to be components installed for the purpose of meeting 
the performance requirements of advanced technology vehicles; and

(iv) shall examine the meaning of the terms ``qualifying components'' and 
other key terms in subsection 17013(a) of title 42, United States Code.

[[Page 62543]]

                    (b) Within 30 days of the date of this order, the 
                Secretary of Energy shall review the Department of 
                Energy's regulations (including any preambles thereto) 
                interpreting Title XVII and the ATVM statute, including 
                the regulations published at 81 Fed. Reg. 90,699 (Dec. 
                15, 2016) and 73 Fed. Reg. 66,721 (Nov. 12, 2008), and 
                shall identify all such regulations that may warrant 
                revision or reconsideration in order to expand and 
                protect the domestic supply chain for minerals 
                (including the development of new supply chains and the 
                processing, remediation, and reuse of materials already 
                in interstate commerce or otherwise available 
                domestically). Within 90 days of the date of this 
                order, the Secretary shall propose for notice and 
                comment a rule or rules to revise or reconsider any 
                such regulations for this purpose, as appropriate and 
                consistent with applicable law.

                Sec. 5. The Secretary of the Interior, the Secretary of 
                Agriculture, the Secretary of Commerce, the 
                Administrator of the Environmental Protection Agency, 
                the Secretary of the Army (acting through the Assistant 
                Secretary of the Army for Civil Works), and the heads 
                of all other relevant agencies shall, as appropriate 
                and consistent with applicable law, use all available 
                authorities to accelerate the issuance of permits and 
                the completion of projects in connection with expanding 
                and protecting the domestic supply chain for minerals.

                Sec. 6. The Secretary of the Interior, the Secretary of 
                Energy, and the Administrator of the Environmental 
                Protection Agency shall examine all available 
                authorities of their respective agencies and identify 
                any such authorities that could be used to accelerate 
                and encourage the development and reuse of historic 
                coal waste areas, material on historic mining sites, 
                and abandoned mining sites for the recovery of critical 
                minerals.

                Sec. 7. Amendment. Executive Order 13817 is hereby 
                amended to add the following sentence to the end of 
                section 2(b): ``This list shall be updated 
                periodically, following the same process, to reflect 
                current data on supply, demand, and concentration of 
                production, as well as current policy priorities.''

                Sec. 8. Definitions. As used in this order:

                    (a) the term ``critical minerals'' means the 
                minerals and materials identified by the Secretary of 
                the Interior pursuant to section 2(b) of Executive 
                Order 13817, as amended by this order; and
                    (b) the term ``supply chain,'' when used with 
                reference to minerals, includes the exploration, 
                mining, concentration, separation, alloying, recycling, 
                and reprocessing of minerals.

                Sec. 9. 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 62544]]

                    (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,

                    September 30, 2020.

[FR Doc. 2020-22064
Filed 10-2-20; 8:45 am]
Billing code 3295-F1-P