ExecutiveOrdersEO
DetDeterminationTrump 45 · R Quiet signal

Presidential Determination

Presidential Determination Pursuant to Section 303 of the Defense Production Act of 1950, as Amended

This determination invokes Section 303 of the Defense Production Act to declare that domestic production capability for separation and processing of Light Rare Earth Elements is essential to national defense. It finds that private industry alone cannot meet this need adequately or timely, and that presidential action under the Act is the most practical alternative.

Federal Register Open PDF 84 FR 35969

Impact dates

  1. Publication of memorandum in Federal Register

Key directives

  • Determine domestic Light Rare Earth Elements separation and processing capability essential to national defense under DPA §303(a)(5)
  • Find that US industry cannot reasonably provide this capability without presidential action
  • Find that DPA purchases/commitments are most cost-effective, expedient, and practical alternative
  • Direct Secretary of Defense to publish determination in Federal Register

Who is ordered

Timeline

Immediate

  • DPA Section 303 authority activated for Light Rare Earth Elements
  • Determination published in Federal Register

Near term (90d)

  • Potential DPA-funded purchases, purchase commitments, or other actions to establish/protect domestic rare earth separation and processing capability

Long term

  • Development or sustainment of domestic Light Rare Earth Elements supply chain independent of foreign sources

Risks & tensions

  • Implicitly targets China-dominated rare earth supply chain without naming it
  • Cost-effectiveness finding may be challenged given DPA interventions typically involve market distortions
  • No explicit funding ceiling or scope limit specified in determination text
Presidential Determination: Presidential Determination Pursuant to Section 303 of the Defense Production Act of 1950, as Amended · Executive Orders