Coal used in steelmaking designated as a critical material
U.S. Secretary of Energy Chris Wright announced on May 22 the designation of coal used in the production of steel as a critical material under the Energy Act of 2020, in accordance with President Trump’s Executive Order “Reinvigorating America’s Beautiful Clean Coal Industry.”
This action affirms the Administration’s commitment to American energy dominance, manufacturing resurgence, and strengthening America’s energy and industrial security.
A Department of Energy analysis concluded that metallurgical coal, a key input for steel production, meets the statutory definition of a critical material. A robust steel industry is fundamental to U.S. manufacturing, infrastructure development, and economic resilience. Steel is essential to energy technologies, transportation, and defense systems, as the materials that enable steel production (including metallurgical coal and anthracite) are vital to American interests.
“Metallurgical coal is more than a fuel—it is a cornerstone of our industrial base,” said Secretary Wright. “By designating metallurgical coal as a critical material, we are ensuring that American steel, generated by American coal, remains the backbone of our manufacturing sector.”
Why Coal Qualifies as a Critical Material:
- Metallurgical coal possesses unique properties necessary for producing coke, the fuel and reactant required for steel production using the blast furnace–basic oxygen furnace method.
- Anthracite coal, concentrated in the Appalachian region, plays a key role in the electric arc furnace method, which accounts for approximately 70% of domestic steel production.
- The U.S. coal industry, provides reliable, domestically sourced metallurgical and anthracite coal essential to supporting both steelmaking processes.
- There are over 150 metallurgical coal mines in the United States that employ tens of thousands of Americans.
- Shared infrastructure and workforce supporting both thermal and metallurgical coal production are under strain from declining investment and operational capacity. Without intervention, this erosion will jeopardize domestic steel dominance.
The designation underscores the multiple threats facing the U.S. steel sector, including foreign anti-competitive practices, unreliable supply chains, and underinvestment in critical upstream materials. In accordance with the President’s proclamation on adjusting steel imports, this determination supports strategic supply chain development and reindustrialization efforts.
The designation of coal for steelmaking as a critical material is inclusive of its supply chain vulnerability and its indispensable role in the energy sector. Steel is a foundational component of U.S. energy infrastructure, from our pipelines to transmission towers, linked to national energy security.
Source: U.S. Department of Energy
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