Reclassification of coal: Geoeconomic implications of Trump's Executive Order on Strategic Minerals

Dr. Rafael Marrero. Founder and President of the Miami Strategic Intelligence Institute for FinGurú

STRATEGIC INTELLIGENCE REPORT
Washington's decision to elevate coal to strategic mineral status marks a radical shift in U.S. energy policy and national security posture, aimed directly at China.
The White House has reclassified coal as a strategic mineral under Executive Order 14241. This decision aligns national energy dominance policy with the need to secure long-term energy sovereignty, support economic resilience, and promote emerging technologies.
Why is it important?
This reclassification marks a decisive change in U.S. critical minerals policy, equating domestic coal with rare earths and other vital inputs for national defense, electrical grid modernization, and industrial independence.

The Return of Coal: Redefined as a Strategic Asset
The administration of President Donald J. Trump has reclassified coal as a strategic mineral through a new executive order from the White House, in a bold move that evokes the Cold War. Once a symbol of the American industrial past, coal is being redefined as a national security asset, essential not only for U.S. energy independence but also for the country's ability to withstand Chinese industrial coercion and environmental dictates.
This change places coal, long vilified in global climate diplomacy, on the same strategic level as rare earths, uranium, and lithium. But this goes beyond political symbolism. The reclassification reflects a growing consensus among policymakers of the Trump era: in an age of strategic competition, energy is not just a commodity but a weapon.

Strategic Context: From Industrial Fuel to Strategic Mineral
The reclassification of coal derives from legal authorization under the Strategic and Critical Materials Stockpiling Act (50 U.S.C. § 98 et seq.). It aligns with Executive Order 13953 of 2020, which declared a national emergency in the U.S. critical minerals supply chain. Although coal was previously excluded due to its national abundance and environmental concerns, the Trump administration now cites four justifications for its strategic reevaluation:
National energy resilience against grid instability and cyber warfare threats;
Defense-grade metallurgy, with metallurgical coal (coking coal) essential for producing military-grade steel;
Preparation for economic warfare, allowing stockpiles to mitigate crises in the global energy market;
Strategic decoupling from China, especially in financially dominated environments by ESG criteria, where access to coal is instrumentalized through capital restrictions.
By reclassifying coal under this framework, Trump's team has effectively declared that clean energy mandates driven by globalist institutions no longer dictate U.S. security doctrine.

Analysis: Four Strategic Dimensions of the Coal Pivot
1. Energy Sovereignty vs. ESG Global Pressure
The reclassification of coal marks a formal break from the framework of the Paris Climate Agreements and its influence on U.S. industrial policy. This move signals that Washington will no longer allow environmental, social, and governance (ESG) standards, primarily designed by European institutions and Chinese green technology monopolies, to limit U.S. energy autonomy.
By declaring coal strategic, the U.S. elevates the value of fossil fuels to the same level as renewables, framing the debate not as one about carbon neutrality, but about energy resilience and civilizational sovereignty.
2. Military-Industrial Utilities: The National Defense Steel Chain
Few realize that metallurgical coal, not just thermal coal, is indispensable for the U.S. defense sector. Military hardware, from aircraft carriers and tanks to hypersonic missile shells, requires high-strength steel, which in turn depends on high-quality coking coal. China dominates global exports of metallurgical coal and steel, meaning the U.S. could be subjected to strategic blackmail in a conflict or prolonged blockade scenario. Therefore, the Trump administration bolsters domestic steel supply chains and ensures the continuous production of critical defense assets (Geopolitical Futures, 2024).

3. Geoeconomic Response to China's Resource Utilization as a Weapon
The People's Republic of China has weaponized its resource control—such as graphite, gallium, and rare earths—to punish countries like Japan, Lithuania, and the Philippines for their political defiance. The reclassification of coal allows the U.S. to adopt a reciprocal framework, creating a legal basis for export controls, subsidies, and national stockpiles.
In this context, coal is not a fuel but a deterrent in a broader war of attrition over who controls the world's industrial raw materials.
4. The Rebuilding of National Manufacturing
Trump's ordinance on coal complements the broader "America First 2.0" relocation and reindustrialization strategy. From steel plants in Pennsylvania to critical mineral refining facilities in West Virginia, the classification of coal serves as a market signal to investors: traditional energy sources are once again welcome in the U.S. industrial base.
This is likely to accelerate investment in dual-use infrastructure, where thermal coal backs the grid and metallurgical coal fuels defense-oriented manufacturing zones.

Implications for the U.S., Allies, and Adversaries
➤ For Federal Agencies
The Departments of Energy and Defense must update the inventories of strategic materials, possibly designating coal-related infrastructure as critical under CISA and Department of Defense resilience programs. This includes funding for backup coal power plants to counter the risks of cyberattacks on renewable energy networks.
➤ For U.S. Industry
This reclassification will protect domestic coal producers from ESG financial exclusion, as investments in "strategic minerals" benefit from exemptions under the Defense Production Act and the Inflation Reduction Act, Section 60102 (WhiteHouse.gov, 2025). New capital flows to Appalachia and the Midwest are anticipated.
➤ For Allies
An energy realignment within the Five Eyes and Quad alliances is expected. Japan and Australia, already significant coal exporters, may now frame their exports as part of a western strategic reserves system, helping Washington counter China's ecological control. ➤ For China
Beijing views this as a provocation, a sign that the U.S. is preparing for a long-term decoupling of resources. The shift towards coal could also justify reciprocal measures from China to restrict rare earth exports or diplomatically retaliate at COP summits.

Looking Ahead: Turning Points and Risk Trajectories
This policy could trigger a new front in the economic Cold War, shifting tariff battles to raw materials. Watch for the following critical points:
Stalling the G7 climate diplomacy: With the U.S. embracing coal, transatlantic climate unity will fracture, likely leading to divergent emission trajectories and boondoggles in climate financing.
Counteroffensive of green finance: Wall Street ESG funds could be legally challenged if they refuse to support "strategic minerals," triggering a legal conflict over fiduciary duties versus national interest.
Militarization of the energy grid: More coal microgrids and fortified energy nodes are expected near military facilities, under the banner of resilience against the network war.

Policy Recommendation
Congress should promptly pass a Strategic Energy Sovereignty Act, formally incorporating coal into the National Defense Stockpile and authorizing tax credits, expedited permits, and links to military procurement for domestic metallurgical coal producers.
Simultaneously, the U.S. should lead a Western Minerals Strategic Pact, coordinating with allies to integrate coal, uranium, and rare earths into a resource shield akin to NATO's.

References
Financial Times (2024). China's Critical Minerals Blackmail. https://www.ft.com
Geopolitical Futures (2024). Steel, Coal, and National Security: A Strategic Reevaluation. https://geopoliticalfutures.com
White House (2025). Executive Order on the Designation of Coal as a Strategic Mineral. https://www.whitehouse.gov

Dr. Rafael Marrero. Distinguished business leader and strategic advisor with extensive experience in public contracting, supply chain, and program management, Dr. Marrero is recognized for his award-winning expertise in federal procurement and U.S.-China relations. He has successfully guided numerous public sector companies, and his commitment to impactful solutions makes him an invaluable leader at MSI². Dr. Marrero is the author of four best-selling Amazon books and a popular podcast on Apple, The China Threat.
Member of the Industry Advisory Council of Forbes magazine.