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 Samarium Cobalt Rare Earth Permanent Magnets is essential to national defense, finding that U.S. industry cannot meet this need without presidential action. It authorizes the use of DPA authorities—including purchases, purchase commitments, or other actions—to develop this critical rare earth magnet production capability.

Federal Register Open PDF 84 FR 35975

Impact dates

  1. Federal Register publication

Key directives

  • Determine domestic Samarium Cobalt Rare Earth Permanent Magnet production essential to national defense under DPA Section 303(a)(5)
  • Authorize purchases, purchase commitments, or other DPA actions as most cost-effective method to meet need
  • Direct Secretary of Defense to publish memorandum in Federal Register

Who is ordered

Timeline

Immediate

  • DPA Section 303 authorities activated for Samarium Cobalt magnets
  • Authority for DOD to use purchase commitments and other incentives

Near term (90d)

  • Potential DOD procurement actions to establish or expand domestic production

Long term

  • Development of domestic rare earth magnet supply chain
  • Reduced dependency on foreign rare earth sources

Risks & tensions

  • Rare earth supply chain heavily concentrated in China creates strategic vulnerability
  • DPA incentives may distort market economics for rare earth production
  • Environmental permitting for domestic rare earth mining remains uncertain
  • No explicit funding amount or timeline specified for procurement actions
Presidential Determination: Presidential Determination Pursuant to Section 303 of the Defense Production Act of 1950, as Amended · Executive Orders