US President Donald Trump is in the process of drafting an executive order that would enable America to stockpile the wealth of critical minerals found on the Pacific Ocean seabed, the Financial Times reported on Saturday…The move is aimed at countering Chinese global dominance in the critical minerals sector by tapping into a largely unexploited part of the Earth. The polymetallic nodules formed on the sea floor are said to contain rich amounts of nickel, cobalt, copper and manganese used in batteries, as well as traces of rare earth minerals, a group of 17 elements required to build high-tech applications…The executive order, according to FT, would allow the US government to build a “strategic reserve” of these critical minerals, like it had done with gold and oil. The plan is to “create large quantities ready and available on US territory to be used in the future” in case of a conflict with China that might constrain imports of metals and rare earths, the FT sources said…The critical minerals stockpile is part of a broader push to fast-track deep-sea mining applications under US law, and to create onshore processing capacity, the FT report added. It coincides with a Reuters report earlier this month that the Trump administration is considering an executive order to accelerate seabed mining by allowing companies to bypass authorities backed by the United Nations and seek permits directly from the National Oceanic and Atmospheric Administration.

China has suspended exports of a wide range of critical minerals and magnets, threatening to choke off supplies of components central to automakers, aerospace manufacturers, semiconductor companies and military contractors around the world…Shipments of the magnets, essential for assembling everything from cars and drones to robots and missiles, have been halted at many Chinese ports while the Chinese government drafts a new regulatory system. Once in place, the new system could permanently prevent supplies from reaching certain companies, including American military contractors…On April 4, the Chinese government ordered restrictions on the export of six heavy rare earth metals, which are refined entirely in China, as well as rare earth magnets, 90% of which are produced in China. The metals, and special magnets made with them, can now be shipped out of China only with special export licenses…But China has barely started setting up a system for issuing the licenses. That has caused consternation among industry executives that the process could drag on and that current supplies of minerals and products outside of China could run low…In a potential complication, China’s Ministry of Commerce, which issued the new export restrictions jointly with the General Administration of Customs, has barred Chinese companies from having any dealings with an ever-lengthening list of American companies, particularly military contractors…Rare earth magnets make up a tiny share of China’s overall exports to the United States and elsewhere. So, halting shipments causes minimal economic pain in China while holding the potential for big effects in the United States and elsewhere…Chinese customs officials are blocking exports of heavy rare earth metals and magnets not just to the United States but to any country, including Japan and Germany. Enforcement of the new export license requirement, though, has been uneven so far among different Chinese ports, rare earth industry executives said…Until 2023, China produced 99% of the world’s supply of heavy rare earth metals, with a trickle of production coming out of a refinery in Vietnam. But that refinery has been closed for the past year because of a tax dispute, leaving China with a monopoly…China also produces 90% of the world’s nearly 200,000 tons a year of rare earth magnets, which are far more powerful than conventional iron magnets.