Presidential DocumentExecutive Order 139532020-22064
Addressing the Threat to the Domestic Supply Chain From Reliance on Critical Minerals From Foreign Adversaries and Supporting the Domestic Mining and Processing Industries
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Published
October 5, 2020
Signed
September 30, 2020
Issuing agencies
Executive Office of the President
Full Text
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<title>Federal Register, Volume 85 Issue 193 (Monday, October 5, 2020)</title>
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[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 [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[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.
<GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT>
(Presidential Sig.)
THE WHITE HOUSE,
September 30, 2020.
[FR Doc. 2020-22064
Filed 10-2-20; 8:45 am]
Billing code 3295-F1-P
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</html>Indexed from Federal Register on October 5, 2020.
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