MP minerals partnership?, page-43

Here is a thought to consider; and potential reason the Australian government had to add $200M equity into ARU.

If ARU are considering a partnership with the US; we could be waiting on the following to provide necessary cash. The two trump actions suggest plenty of cash on the way for US industry, and a JV is a method to get this cash into Australia mines required for Rare Earths that would reduce the Chinese dependency and control.

The two major actions/documents are the executive order 14241 & the Presidential Memorandum (MEMO). The was an obvious need for the MEMO, as it allows cash release above $50M quickly.

Linking the May 23, 2025 Presidential Memorandum and Executive Order 14241 on Critical Minerals

On May 23, 2025, the U.S. President issued a Presidential Memorandum under the Defence Production Act of 1950, taking immediate action to boost the production of critical minerals and defence-related technologies. This action aims to address vulnerabilities in the U.S. supply chain, especially as concerns over China’s dominance in the global minerals market grow. The memorandum was followed by anticipation surrounding Executive Order 14241, expected for release on June 7, 2025. Together, these two documents signal a strategic pivot toward securing U.S. critical mineral supplies, ensuring economic resilience, and strengthening national defence in the face of evolving geopolitical challenges.

Presidential Memorandum of May 23, 2025: Waiving Requirements Under the Defence Production Act

On May 23, 2025, the U.S. President signed a Presidential Memorandum that invoked the Defence Production Act (DPA) to accelerate the domestic production of critical minerals and defence materials. This memorandum is a response to pressing shortages in essential materials, including those used in munitions, missiles, and critical minerals like uranium, copper, potash, and gold.

The memorandum waives certain legal requirements of the DPA, including provisions that normally necessitate Congressional approval for defence-related projects over $50 million. This measure is intended to speed up production and reduce bureaucratic delays in securing the materials necessary for the U.S. military and technological sectors.

Specifically, the memorandum states that shortfalls in these materials would severely impair the national defence capability, making it imperative to increase production capacity. The President directed that this memorandum be published in the Federal Register, ensuring its official publication and public accessibility.

Executive Order 14241: A Broader Strategic Framework

While the Presidential Memorandum focuses on immediate actions to address critical mineral shortages, Executive Order 14241 (expected to be released on June 7, 2025) is anticipated to outline the long-term strategic goals of the U.S. government in securing critical minerals for both defence and economic resilience.

The order is likely to focus on:

1. Establishing long-term supply chains for critical minerals.

2. Investing in domestic mining, refining, and processing capabilities to reduce reliance on foreign sources, particularly China.

3. Strengthening international partnerships with mineral-rich allies, such as Australia, to build a diversified and secure mineral supply chain.

4. Promoting sustainable practices in mining and mineral extraction to ensure that U.S. operations remain both economically viable and environmentally responsible.

The anticipated Executive Order 14241 is seen as a more comprehensive approach to the challenges highlighted in the Presidential Memorandum, as it seeks to ensure that U.S. supply chains for critical minerals are both secure and resilient in the face of future challenges.

How These Documents Tie Together

1. Immediate vs. Long-Term Strategy:

   • The Presidential Memorandum focuses on immediate action to increase production capacity for munitions and critical minerals, addressing urgent defence needs and supply shortages. This is a short-term solution, addressing vulnerabilities in the defence and technology sectors caused by a lack of domestic supply.

   • Executive Order 14241, expected on June 7, 2025, will likely take a long-term strategic approach by formalising and expanding efforts to secure U.S. mineral independence. It will likely include steps for investing in mining infrastructure, building new supply chains, and creating partnerships with countries that can help secure a steady supply of critical minerals.

2. Shared Geopolitical Goals:

   • Both the Presidential Memorandum and Executive Order 14241 share a common objective: reducing the U.S.’s reliance on foreign sources, especially China, for critical materials. China currently controls a significant portion of the global supply of minerals like rare earths, lithium, and cobalt, which are crucial for both military technologies and advanced civilian industries.

   • By waiving bureaucratic requirements (as done in the memorandum) and expanding long-term production capabilities (as anticipated in the executive order), the U.S. is actively working to counterbalance China’s influence and protect its national security and economic interests.

3. National Defence and Economic Resilience:

   • A key theme in the Presidential Memorandum is that ensuring a resilient domestic industrial base is essential to national security. Executive Order 14241 is expected to extend this concept by building sustainable domestic capacity in critical industries, thereby improving economic resilience and reducing reliance on geopolitical adversaries.

   • Together, these actions aim to ensure that the U.S. is not vulnerable to supply chain disruptions, whether caused by geopolitical tensions, trade wars, or natural disasters. This will strengthen the U.S.’s position in both military readiness and economic competition.
     
     
     Implications

1. • Domestic Mining and Processing Expansion:
     Presidential Memorandum is expected to stimulate U.S. mining and mineral extraction industries, potentially leading to the reopening of mines and the development of new mining projects. This could create significant economic benefits, including job creation and technological innovation. However, environmental concerns and opposition from local communities may present challenges to large-scale mining operations.

2. International Trade and Partnerships:

   • The focus on securing supply chains for critical minerals could lead to increased partnerships with countries like Australia, Canada, and India, which have significant mineral resources. This could reduce the U.S.’s exposure to China’s control over these materials. However, these partnerships will need to be carefully negotiated to ensure that the U.S. maintains control over key segments of the supply chain, especially processing and refining.

3. Geopolitical Tensions:

   • The Presidential Memorandum’s waiver of legal requirements and the expected Executive Order are both likely to escalate geopolitical tensions, especially with China. Given that China has historically used its control over critical minerals as a leverage point in international trade, the U.S. could face retaliatory actions or economic countermeasures as a result of these policy shifts.

4. Technological and Environmental Innovation:

   • As part of both the memorandum and executive order, there could be significant investment in technology to make mineral extraction more efficient, sustainable, and environmentally responsible. This could position the U.S. as a leader in the development of green mining technologies and circular economies for minerals such as rare earths, lithium, and cobalt.

Conclusion

The Presidential Memorandum of May 23, 2025, and the anticipated Executive Order 14241 represent a critical step in the U.S. government’s strategic efforts to ensure mineral security and defend national interests in an increasingly multipolar world. While the memorandum addresses immediate vulnerabilities, Executive Order 14241 is expected to set out a comprehensive framework for long-term resilience in U.S. mineral and defence supply chains.

Together, these actions reflect the U.S.’s recognition that the future of national security and economic power hinges on securing access to critical resources. As the global competition for minerals heats up, these documents will play a pivotal role in shaping the future of U.S. defence and industrial policy for years to come.

• Presidential Memorandum on Critical Minerals – May 23, 2025.

• Executive Order 14241 – Expected release on June 7, 2025. As stated in Reuters - here. Exclusive: Trump set to waive some legal requirements to boost critical minerals | Reuters