President Donald Trump has signed an executive order using the Defense Production Act to increase domestic production of critical minerals as the administration tries to reduce reliance on China for mining and processing of important materials.

Critical minerals are used in a variety of goods from defense to clean energy and consumer products and are vital to future economic production and national security.

The order directs the secretary of defense and other agency heads to identify and expedite mineral production projects that can be immediately approved or issued permits.

It also gives Defense Secretary Pete Hegseth more authority to use the Defense Production Act to help facilitate the advancement of domestic mineral production.

Competing with China is challenging for domestic companies because its market dominance allows it to keep prices below levels that difficult for other countries to compete.

Trump’s order asks several agency heads to identify “as many sites as possible” where private mineral production could take place, along with developing financing methods to facilitate it with a new fund within the U.S. International Development Finance Corp.

It directs federal agencies to list federal lands, including those controlled by the Pentagon, that could be used for mineral processing.

“It is imperative for our national security that the United States take immediate action to facilitate domestic mineral production to the maximum possible extent,” the order says.

The U.S. has been trying to reduce its reliance on China as tensions with Beijing have increased over the years and it has placed export controls on a variety of metals. More export controls over critical minerals could also be a part of China’s response to Trump’s tariffs, further increasing the need for the U.S. to produce more or find other trading partners.

China has already put controls on five metals — tungsten, tellurium, bismuth, indium and molybdenum — and related products in response to Trump’s tariffs on all Chinese goods.

The Department of the Interior has designated 50 minerals as being strategically critical, and China is one of the biggest producers of 30 of those.

“We want to get away from supply chains that pass through China to the extent that you’re seeing tariff retaliation now, and it makes sense to develop those,” said Tim Johnson, professor of the practice in energy and the environment at Duke University. “It’s not just energy, but in a way this is a new geopolitical energy security issue.”

Trump’s order was praised by the mining industry that framed it as key to national security and countering China.

The industry has also taken issue with a burdensome permitting process and environmental regulations that have gotten in the way of starting new mining and refining facilities.

“Ramping up American mining is a national security imperative, and President Trump’s strong action recognizes that.” National Mining Association president and CEO Rich Nolan said in a statement. “By encouraging streamlined and transparent permitting processes, combined with financing support to counter foreign market manipulation, we can finally challenge China’s mineral extortion.”

The order builds on an increasing focus from Trump to expand U.S. access to the rare metals since returning to office and a broader shift dating back to his first administration. Former President Joe Biden also invoked the Defense Production Act to increase production and approved some mining projects for them, mostly focusing on minerals used for clean energy.

“What makes this more significant is pulling back on other environmental regulations. This really focuses on federal lands, prioritizing mineral development, looking at existing projects or projects that are in the pipeline, with permitting and accelerating that,” Johnson said. “That push, which is a little bit similar to what Biden did, coupled with the other pullbacks and regulatory reductions that the administration is now pushing will make this more significant.”

Trump also said he would be signing a deal with Ukraine on the minerals “very shortly.”

“It’s a big thing in this country. And as you know we’re also signing agreements in various locations to unlock rare earths and minerals and lots of other things all over the world. But in particular Ukraine,” Trump said at an event on Thursday.

Ukraine has significant reserves of about 20 of the minerals on the Interior Department’s list, though there are questions about the feasibility of mining and processing them..

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