[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.
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.
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.
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
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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.
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.
(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.
(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:
(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;
(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:
(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.
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(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