Mining, EVs, and Permitting Reform: What a Second Trump Term Could Mean for U.S. Energy

Permitting reform under a potential second Trump administration could shape the future of mining projects and their role in the energy transition. This administration could potentially prioritize oil, natural gas, and coal, while giving less attention to boosting renewable energy initiatives or supporting projects like electric vehicles (EVs). Despite the growing need for critical minerals in clean energy technologies, Trump’s approach is unlikely to incentivize EV development, with figures like Elon Musk backing the removal of EV credits, believing Tesla can compete without such subsidies.

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Permitting Reform in the Trump Administration

About the authors
Scot Anderson
Ana Maria Gutiérrez

Transcript

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Permitting reform under a potential second Trump administration could shape the future of mining projects and their role in the energy transition. This administration could potentially prioritize oil, natural gas, and coal, while giving less attention to boosting renewable energy initiatives or supporting projects like electric vehicles. Despite the growing need for critical minerals in clean energy technologies, Trump’s approach is unlikely to incentivize Electronic Vehicle development, with figures like Elon Musk backing the removal of Electronic Vehicle credits, believing Tesla can compete without such subsidies.

On the other hand, Trump’s policies may support domestic mining to strengthen U.S. supply chains and reduce dependence on China for critical minerals. For example, he previously restored mineral leases for Minnesota's Twin Metals project after the Obama administration rescinded them—a decision later overturned by Biden. Trump has made clear his commitment to reinstating these leases and pushing for U.S. self-reliance in critical materials production. His broader goal of “onshoring” supply chains aligns with promoting domestic mineral development.
However, reforming permitting processes won’t come without challenges. Federal and state agencies tasked with approving these projects are already facing staff shortages. Trump’s preference for reducing the federal workforce could worsen delays, creating a significant bottleneck for efficient permitting.

Further complicating matters are recommendations from Project 2025, a conservative initiative proposing reforms to speed up permitting. These suggestions include limits on environmental review timelines, restrictions on legal challenges to environmental decisions under NEPA, and reinstating policies to streamline permit approvals. While these ideas aim to simplify processes, they risk triggering more lawsuits and may only bring marginal improvements.

Ultimately, while the Trump administration’s policies might stimulate mining development and address U.S. supply chain vulnerabilities, they raise important questions. Can these efforts align with practical requirements like adequate staffing? And how will conflicting priorities—such as fostering mining while de-emphasizing renewable energies—play out in the long term? Addressing these challenges will be key to achieving meaningful and lasting permitting reform.

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