US President Donald Trump recently signed an executive order to secure domestic defense supply chains, limiting waivers that allow contractors to source critical materials from adversarial nations and requiring more comprehensive mapping of supply chains for national security procurements.
The order, signed on July 20, restricts circumstances under which the Secretary of Defense can issue waivers for critical materials from covered nations under 10 U.S.C. 4872, in some cases requiring contractors to submit mitigation plans to onshore their supply chains.
It also directs the Department of War to pursue regulatory action requiring more comprehensive mapping of critical supply chains, as designated by the Secretary of War, and encourages contractors to qualify new domestic and partner-nation sources for critical minerals, materials and components, while removing regulatory barriers in the qualification process.
The White House said the order is intended to preserve US military dominance amid renewed great power competition, arguing that supply chain resilience and domestic production have been historically under-prioritized despite longstanding prohibitions on sourcing sensitive materials from geopolitical adversaries.
The order builds on a series of prior actions by the Trump administration aimed at strengthening the defense industrial base and domestic mineral production. Trump signed executive orders in January and April 2025 to modernize defense acquisitions, and another in March 2025 to boost American mineral production and streamline permitting.
In January 2026, Trump directed the Secretary of Commerce and the US Trade Representative to negotiate agreements with trading partners over imports of processed critical minerals and their derivative products. The following month, he signed an order establishing the America First Arms Transfer Strategy, aimed at positioning the American industrial base as a primary arms supplier for the United States and its allies.
Who stands to benefit
The order is expected to boost domestic and allied producers of critical minerals used in defense applications, as contractors face pressure to move away from suppliers linked to China, Russia, Iran and North Korea.
MP Materials, in which the Pentagon holds a $400 million equity stake, is positioned to benefit from continued demand for domestically produced rare earths. Nova Minerals Corp (ASX:NVA, NYSE-A:NVA, FRA:QM30), which holds a $43.4 million Defense Production Act Title III award for its antimony project in Alaska, has said the order supports its integrated domestic supply chain strategy.
Copper producers are also likely to draw attention under the order's supply chain mapping requirements, given copper's role in military wiring, connectors and power electronics. Gunnison Copper Corp (TSX:GCU, OTCQB:GCUMF, FRA:3XS0), which produced more than 2.1 million pounds of copper cathode during a recent production ramp at its Johnson Camp mine in Arizona, is among the companies positioned to supply that demand. Copper-molybdenum project holders including Faraday Copper (TSX:FDY, OTCQX:CPPKF), Northern Dynasty Minerals and Ivanhoe Electric are also potential beneficiaries.
American Resources Corp (NASDAQ:AREC), which focuses on domestic recovery and processing of critical minerals for defense and clean energy uses, aligns with the order's broader push toward onshoring supply chains. Royalty Management Holding Corp (NASDAQ:RMCO), which holds royalty interests across mining and natural resource assets, could also see increased interest as investors look for exposure to domestic critical minerals production without direct operating risk.
Pentagon officials have said they intend to work with contractors on compliance timelines.