Pentagon willing to work with industry over critical mineral EO concerns

FARNBOROUGH and WASHINGTON — Amidst industry concerns that a new executive order on critical minerals has an unrealistic timeframe, a key Pentagon official is saying the department is prepared to work with companies — as long as they are making a good-faith effort to comply with the order. “What we need to do is commit to companies to say, ‘Look, how are you going to go ahead and resolve this problem through friendshoring, through domestic shoring, through changes in suppliers?” Michael Cadenazzi, the assistant secretary of defense for industrial base policy, told Breaking Defense Wednesday on the sidelines of the Farnborough Airshow. “And if there’s a gap, a legitimate gap, [and] you have a plan and you need a window to see you through [to] bridge that gap, that’s what we want to know,” he added. “But it’s about the plan, it’s about the mitigation plan for the long haul.” Cadenazzi’s comments came two days after the White House released a new executive order essentially giving companies until the start of 2027 to stop using critical materials and minerals from Russia, Iran, North Korea and most notably China. More specifically, that EO told Defense Secretary Pete Hegseth that he has six months to craft policy and implementation guidance requiring all prime contractors and subcontractors to map out and trace “all components, parts, equipment, software, and materials back to the origin of raw materials in their supply chains.” The Pentagon will then look at those “vulnerabilities, bottlenecks, and single points of failure” to map out national security risks. “The United States must secure its supply chains against physical, cyber, and economic subversion,” the EO said. “It is the policy of the United States that not only the finished equipment deployed by our military, but also the critical materials and components necessary to manufacture, maintain, sustain, and repair that equipment, are sourced domestically or from allied nations.” Although there are already laws in place designed to ensure such materials are sourced from domestic companies or partner nations, the department has been issuing waivers to allow US firms to buy from China or other prohibited countries. However, the EO directs the department to stop issuing such waivers on Jan. 1, 2027, unless the prime contractor submits an acceptable, “formal” mitigation plan. Cadenazzi explained that while this transition is much needed, the White House is willing to meet contractors halfway and “work with you in the near term.” “If [they say] ‘I need something to bridge me through until next summer,’ we want to have that conversation,” he added. “In many cases, we think there are solutions that are reasonable between friends and allies and us as we ramp up investment.” Feasibility Questions While the EO provides wiggle room during this transition, there are concerns from industry that the move is going to take time, money and, possibly, pose a national security risk. For example, the Aerospace I…