Trump Signs Executive Order Creating Stricter Rules for Defense Contractors’ Critical Mineral Supply Chains

U.S. President Donald Trump signed an executive order on Monday that makes it more difficult for defense contractors to secure waivers that would let them purchase critical minerals and materials from prohibited foreign suppliers.

The executive order is meant to address national security vulnerabilities that emerge from U.S. reliance on foreign providers of rare earth materials, including China.

“Many critical minerals and processed materials used in missiles, aircraft, and other systems still rely on Chinese suppliers,” Reuters reported.

The order furthers the administration’s attempts to reduce reliance on foreign materials for weapons’ supply chains.

“It is the policy of the United States that not only the finished equipment deployed by our military, but also the critical materials and components necessary to manufacture, maintain, sustain, and repair that equipment, are sourced domestically or from allied nations,” the order said.

Contractors now must obtain a waiver to use materials from a prohibited supplier. To get a waiver, companies will have to submit a “formal mitigation plan” that includes “evidence of exhaustive efforts” of their search for alternative materials, details the origins of the material, and the steps the companies will take to reduce their reliance on the prohibited supplier.

Contractors are also required to assess suppliers for foreign ownership, financial vulnerability, and manufacturing risks, as well as replace unreliable suppliers. Complying with these requirements could increase contractor's costs.

Contractors or subcontractors that fail to adhere to the order's new requirements could lose contract opportunities or become the target of a federal investigation and subsequent prosecution.

The order also instructs the U.S. Department of Defense (DOD) to identify and provide a clearer view of the sources of critical minerals, components, and other materials, as well as whether foreign-controlled suppliers that could threaten weapons production in the event of a conflict.

“The Pentagon has been pushing defense contractors like Lockheed Martin and Boeing to rapidly expand weapons ‌production ⁠while trying to identify and eliminate vulnerabilities buried deep inside the military supply chain,” Reuters reported.

DOD has until 17 January 2027 to develop and implement guidance for its contractors and subcontractors to map out their supply chains, according to the order. 

Regardless of the administration’s attempts to steer the U.S. supply chain to rely on domestic materials, or at least those provided by current allies, “analysts think it could be a couple years before the United States is able to meaningfully reduce its reliance on China for a handful of critical rare-earth inputs,” Barron’s reported.

The International Energy Agency (IEA) assessed in October 2025 that China is the leading refiner for 19 out of 20 important strategic minerals, controlling an average market share of 70 percent for each of them. 

“Reliance on a small number of suppliers increases vulnerability to shocks and disruptions, be it from extreme weather, technical failure, or trade disruptions,” according to the IEA's analysis.