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Key Takeaways: 

• The administration has elevated critical minerals to a national security issue, launching trade negotiations and regulatory actions under Section 232, with tariffs still on the table.

• Rebuilding U.S. mining and processing capacity is a central policy goal, aimed at reducing foreign dependence and stabilizing volatile mineral markets.

• Companies should expect increased oversight and potential trade or pricing measures as negotiations proceed and federal supply-chain monitoring intensifies.

On January 14, 2026, following an investigation by the U.S. Secretary of Commerce (“Secretary”) under section 232 of the Trade Expansion Act of 1962 (19 U.S.C. 1862) (“Section 232”), into the effects of imports of processed critical minerals and their derivative products (“Critical Minerals”) on the national security of the United States. After concurring with the Secretary’s determination that the quantities and circumstances of current Critical Minerals imports “threaten to impair the national security of the United States,” the President has authorized actions to be taken to adjust the imports of Critical Minerals to address the identified threat.

Overview of the Federal Action

The President has officially concurred with findings that the United States lacks a secure and reliable supply chain for Critical Minerals. In making this determination, Section 232 directs the Secretary and the President to consider factors related to national defense (including required domestic production needed for defense requirements, capacity of domestic industry to meet such production needs, and availability of supplies and raw materials) as well as factors related to the national economy (including impacts of foreign competition, and displacement of U.S. products by “excessive imports”).

Consequently, the administration has initiated the following:

1. Negotiations with Trading Partners and Potential Trade Restrictions: The U.S. Trade Representative and the Secretary are directed to negotiate with foreign nations to adjust imports and mitigate security vulnerabilities. If negotiations are unsuccessful within 180 days, the administration may implement further measures, including tariffs or minimum import prices (price floors) for specific minerals.
2. Additional Regulatory or Deregulatory Actions: The Secretary, U.S. Trade Representative, and the Secretary of Homeland Security are directed to effectuate the proclamation through the issuance, amendment, or temporary suspension of their respective regulations, rules, and guidance.
3. Supply Chain Monitoring: The Secretary will continue to monitor import levels and review their impact on national security to determine if further executive action is required.
4. No Tariffs—Yet: Unlike several other recent Section 232 investigations, the President did not (at this time) impose tariffs. 

Key Minerals Identified

The Secretary determined that Critical Minerals underpin critical military and economic applications, and found that Critical Minerals are essential to each of the 16 critical infrastructure sectors identified by of April 30, 2024 (Critical Infrastructure Security and Resilience), including:

Chemical Sector: lithium, fluorite, and bromine;

Communications Sector: gallium, germanium, indium, and yttrium;

Energy Sector: cobalt, nickel, uranium, praseodymium, and terbium.

Why This Matters to Companies with U.S. Mining and Processing Operations

This federal shift is highly relevant to companies mining for Critical Minerals in the U.S. for several key reasons:

1. Focus on Domestic Capacity: The proclamation explicitly identifies the decline in domestic production and the offshoring of facilities as a strategic weakness. The federal government now views “sufficient domestic mining and processing” as imperative to reducing reliance on foreign actors.
2. Addressing Price Volatility: The Secretary found that extreme price volatility in mineral markets has historically hindered private sector investment and led to the closure of domestic facilities. The administration’s intent to consider “price floors” is a direct attempt to ensure the long-term viability of domestic mining and processing.
3. Bridging the Processing Gap: The proclamation highlights a critical vulnerability—even when minerals are mined domestically, they are often exported for refining due to a lack of domestic processing capacity. For example, while the U.S. is a major producer of rare earth oxides, it remains nearly 100% reliant on imported rare earth permanent magnets. This indicates a federal push to not only mine but also process materials within the U.S.
4. Alignment with Related Administration Trade Initiatives:  Under the United States-Japan Framework For Securing the Supply of Critical Minerals and Rare Earths through Mining and Processing, signed October 28, 2025, the United States and Japan jointly committed to work together on investments in critical minerals mapping, mining, recycling, and to arrange for mutually complementary stockpiling.  Japan has also announced investment commitments in the United States for critical minerals development, includes a $350 million investment in a lithium-iron-phosphate production facility in the United States. The proclamation potentially provides additional support for these commitments.

Next Steps

If action is taken by the President, Section 232 requires the President to provide a report to Congress within 30 days of the proclamation, explaining the President’s decision to take action under the statute. Moreover, the administration is required to provide an update on the status of trade negotiations within 180 days. We will continue to monitor these negotiations and any potential regulatory changes or guidance issued by the Department of Commerce or Homeland Security that may affect your operations or trade status.

About �鶹ֱ��’s Energy & Infrastructure Sector

�鶹ֱ��’s cross-disciplinary Energy & Infrastructure team of more than 200 attorneys regularly represents clients in the traditional and renewable power, oil & gas, nuclear, and infrastructure and energy transition industries. �鶹ֱ�� offers comprehensive legal services for energy and infrastructure companies and projects to guide clients through every phase—from development and site control to investment, commercial contracting and financing. �鶹ֱ�� can also assist companies involved in mining, processing, and disposal to navigate the various state and federal regulations, international agreements, and national security considerations.