The pariah of fossil fuels has been given pride of place in the Trump administration’s ambitions for a more secure supply of critical minerals.
Last week, the Interior Department added 10 minerals to a list it deems essential for the US economy and national security. Along with metallurgical coal used in steelmaking, the list includes copper, silver, boron, lead, phosphate, potash, rhenium and silicon.
As reported by Reuters, The list serves as a blueprint for Washington’s push to secure supplies of materials needed for defense, manufacturing, and clean energy technologies. It determines which projects qualify for federal incentives, informs national stockpiling and research priorities, and signals to private investors where the government sees long-term strategic value.
Officials and industry leaders say strengthening domestic production could help insulate the U.S. from potential supply shocks or export restrictions imposed by competitors like China, which dominates global refining of many critical minerals.
Still, it was surprising to see coal on the list, along with uranium, which is enriched to fuel nuclear reactors.
Uranium mining has been banned in some North American jurisdictions, including British Columbia, and on the Navajo Nation and in the Grand Canyon in the US. Extraction in Quebec has been subject to an unofficial moratorium since 2013 due to environmental concerns.
Countries including Germany, Switzerland, Italy and Taiwan decided to phase out nuclear power following the Fukushima disaster that happened during the Japanese tsunami of 2011.
The United States is the largest nuclear power in terms of both installed capacity and electricity generation. Its installed capacity of 102 gigawatts is significantly more than France or China.
Coal is being eased out as a fossil fuel in advanced economies, driven by climate policies and cheaper renewables. It is considered the dirtiest fossil fuel because it emits more carbon dioxide per unit of energy produced, and its combustion releases significant amounts of other harmful pollutants like sulfur dioxide and nitrogen oxides.
The United Kingdom closed its last coal power station in September 2024. Belgium, Sweden and Portugal have completely phased it out. Germany infamously turned to coal during the energy crisis of 2022, when Russia cut shipments of natural gas to Europe. The country has a plan to phase out coal by 2038.
It’s a different story in emerging economies. Coal demand reached an all-time high in 2024, with growth primarily in the Asia Pacific region, particularly India and China. China continues to build new coal power capacity, partly to back up intermittent solar and wind power. In 2023, China’s new coal power construction was significantly higher than the rest of the world combined.
According to an AI Overview,
These countries are meeting rapid increases in electricity demand, driven by economic growth and rising quality of life expectations, using a variety of sources including coal.
Domestic coal is seen as a key component of energy security in these nations, reducing reliance on imported fuels.
Some US metallurgical coal mines have shut in recent months amid ample supply and a reduction in exports to China, which put an additional 15% tariff on imports of US coal this year, Reuters said.
The move to add met coal to the critical minerals list fits with Trump’s pro-fossil fuel agenda.
Trump has supported the coal industry by opening federal lands for mining and providing financial support to existing plants. His administration also rolled back or weakened several Obama-era environmental regulations, including the Clean Power Plan, rules on toxic wastewater from coal plants, and mercury and air toxicity standards. The goal was to lower operating costs for coal companies and power plants.
Other new minerals going on the critical list make more sense.
Potash and phosphate are used as fertilizers to grow crops. “These are two minerals where stable supplies are absolutely necessary to fill our plates and feed our communities,” said Corey Rosenbusch, CEO of The Fertilizer Institute.
Copper is widely used in industries that support electrification and decarbonization, along with traditional uses in construction, electronics and power transmission. For example, there is approximately four times as much copper in an electric vehicle than a regular gas-powered one. New AI data centers use reams of copper wiring.
“Power needs copper. That’s what transmits power,” Pierre Gratton, CEO of the Mining Association of Canada, recently told BNN Bloomberg. He added, “It doesn’t matter what kind of power — whether it’s nuclear power, wind power, solar power, hydro power — it all goes on copper wire. Every house has copper wire. Every transmission line is copper.”
Due to mine disruptions and closures such as a mudslide in the underground portion of Grasberg, the second-largest copper mine in the world, in 2026 the copper market is expected to face its most severe deficit in 22 years — 590,000 tons — according to Morgan Stanley.
The deficit is expected to widen by 2029 to 1.1 million tons.
The International Energy Agency warns of a potential 30-40 percent supply shortfall by 2035 if no significant new supply comes online.
US copper miner Freeport McMoRan said it could generate more than $500 million annually in tax credits tied to the 2022 US Inflation Reduction Act if the metal were declared critical.
The country’s largest copper producer is pushing for the designation mostly because copper grades in US deposits are lower than elsewhere.
Silver is considered a critical mineral due to its role in solar energy, EVs and semiconductors, leading to a growing supply deficit and increased demand. The metal used for both industrial and monetary purposes is on track for its fifth consecutive year of deficits, where demand is outpacing mine output.
By Andrew Topf for Oilprice.com
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