Section 232 Investigation Begins on Processed Critical Minerals, Products That Contain Them

The investigation will “determine whether imports of processed critical minerals and their derivative products threaten to impair national security,” the executive order said. It requires a “draft interim report” from the Commerce Department in 90 days, with that agency’s final report and recommendations due in 180 days (i.e., in October).

Commerce will consider whether to impose tariffs and "other import restrictions,” as well as “safeguards to avoid circumvention and any weakening of the section 232 measures” and “policies to incentivize domestic production, processing, and recycling,” among other things.

The investigation will cover processed critical minerals, defined as “critical minerals that have undergone the activities that occur after critical mineral ore is extracted from a mine up through its conversion into a metal, metal powder or a master alloy.” It defines critical minerals using the U.S. Geological Survey’s 2022 critical minerals list, which includes not only rare earths but also metals such as aluminum, magnesium, nickel, tin, titanium and zinc, among other elements.

It also covers “derivative products” that use critical minerals as inputs, including “semi-finished goods (such as semiconductor wafers, anodes, and cathodes) as well as final products (such as permanent magnets, motors, electric vehicles, batteries, smartphones, microprocessors, radar systems, wind turbines and their components, and advanced optical devices).”