Washington, DC—Responding to President Trump signing the National Defense Authorization Act (NDAA) into law, SAFE’s CEO, Avery Ash, issued the following statement:
“The NDAA reflects Washington’s motivation to put the Pentagon at the center of our energy and minerals strategy. By streamlining procurement, further decoupling our defense industrial base from adversarial supply chains, expanding financial tools across essential supply chains, and maintaining focus on military energy needs, Congress has made important strides in this year’s Defense bill under President Trump’s leadership.”
SAFE is proud to support this package, and several provisions in particular that will meaningfully advance U.S. energy and supply chain security:
- Grid Planning for the Department of War:
- New Policy: DoW must develop a procedure to coordinate with grid planning agencies to assess and mitigate risks to defense-critical installations.
- Why it Matters: The reliability of the civilian electric grid is indispensable to DoD’s operational readiness. However, there is currently no formal mechanism requiring coordination between DoD and the entities responsible for grid reliability and transmission planning.
- DFC Reauthorization:
- New Policy: DFC reauthorized with more funding and tools to finance critical mineral projects around the world.
- Why it Matters: Project financing from agencies like DFC is necessary to help counter China’s Belt-and-Road driven dominance of global mineral development and secure feedstock to build out the U.S. midstream.
- DoW Prohibition on Battery Procurement from Adversaries:
- New Policy: Phased in from 2028-2031, DoW must procure batteries and cells from non-FEOC sources.
- Why it Matters: Singular dependence on China for batteries is both a commercial and security risk; DoW must be using its procurement power to send positive signals to investors and bolster U.S. battery supply chains.
- DoW Prohibition on Procurement of Molybdenum, Gallium, and Germanium from Adversaries, Authorization for Production from Recovered Materials:
- Prohibiting FEOC mineral procurement for defense applications robs the CCP of trade leverage, and authorizing Defense use of minerals from recycled materials regardless of their origin opens up new supply to fill the gaps.
- Recycling Provisions:
- New Policy: Expands existing programs to recover minerals from end-of-life goods from DoW.
- Why it Matters: Recycling is an untapped source of secure mineral and metals supply for DoW, and can support availability of primary production for defense-grade applications.
- Addressing Transportation Vulnerabilities:
- New Policy: DoW must evaluate and mitigate cyber and physical vulnerabilities to the Strategic Rail Corridor Network.
- Why it Matters: Transportation infrastructure is a valuable target to undermine the movement of defense-critical goods; it is prudent to take preventative measures to understand vulnerabilities avoid foreign cyber or physical attacks.
- Extension of the Defense Production Act until October 2026:
- DPA is a vital tool that allows the President to quickly remedy supply chain vulnerabilities. A short-term reauthorization was needed to take advantage of funds appropriated by OB3 while giving Congress more time to flesh out a longer-term reauthorization.
###
About SAFE
SAFE is an action-oriented, nonpartisan organization committed to transportation, energy, and supply chain policies that advance the economic and national security of the United States, its partners, and allies. Since 2004, SAFE has worked with its Energy Security Leadership Council—a peerless coalition of current and former Fortune 500 CEOs and retired 4-star admirals and generals—to support secure, resilient, and responsible energy solutions. Learn more at SecureEnergy.org.
