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Trump Pushes for Coal Revival
Trump Designating Coal as a Critical Mineral
Context: In a significant policy shift, President Donald Trump has moved to rebrand coal as a “mineral” and instructed federal officials to examine whether it qualifies as a “critical mineral” under U.S. law.
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- This move is part of a broader strategy aimed at revitalising America’s coal industry and supporting sectors like steel manufacturing and artificial intelligence (AI) data infrastructure.
- The Trump administration has also taken measures to reduce regulatory barriers around coal mining and relaxed requirements for emissions-control technologies in coal-fired power plants.
Global Coal Production Surges
- Ramped Production: The coal resurgence isn’t limited to the United States. Globally, countries like India and China have significantly ramped up their coal and thermal power production, largely to ensure grid stability amid growing energy demands.
- In 2024–25, India achieved a milestone by producing over one billion tonnes of coal for the first time.
- Trump’s Ambitions: In the U.S., coal’s resurgence is closely tied to Trump’s ambitions of bringing back heavy manufacturing, especially steel production, which heavily relies on coking coal.
- Additionally, the administration sees coal as a reliable power source for energy-intensive AI data centres, which are projected to drive a major increase in electricity demand.
Redefining Coal as a Critical Resource
- On March 20, an executive order from the Trump administration redefined the term “mineral” to include substances like coal, paving the way for its classification as a critical resource.
- A follow-up executive order on April 8 added coal to the official list of priority extraction materials.
- This reclassification hinges on provisions from the U.S. Energy Act of 2020, which defines “critical minerals” as those that play an essential role in energy technologies and face high supply risk.
- If officially designated, the U.S. would join the European Union, which already recognises coal as a critical raw material.
- India is also considering a similar move. In a report submitted to the NITI Aayog, Professor R. Srikanth from the National Institute of Advanced Studies recommended recognising coking coal as a critical mineral to secure domestic industrial supply chains.
Meeting AI’s Energy Demands
- As AI technology accelerates, data centres require increasingly stable and abundant power sources.
- Unlike solar and wind, which are intermittent, coal-fired plants offer steady baseload capacity, making them ideal for powering
- According to the International Energy Agency (IEA), electricity consumption by data centres could double by 2026, complicating efforts by tech giants like Google and Microsoft to meet net zero or carbon-negative targets.
- Many of these companies have started sourcing energy from nuclear power plants to address the shortfall.
Debate Over “Clean” Coal
- Despite the Trump administration’s labelling of coal as “clean,” it remains one of the most polluting energy sources.
- Coal is a leading contributor to global greenhouse gas emissions, and its increased use could threaten climate goals unless paired with advanced emissions-reduction technologies.
- The administration argues that current emissions standards impose “severe burdens” by mandating control technologies that are not yet commercially viable.
- However, energy experts warn that expanding coal use without simultaneous investments in carbon capture and emissions abatement could undermine both national and global climate commitments.
As global electricity demand surges and renewable storage remains limited, many governments — including the U.S. — are turning to a diversified mix of power sources. While coal may serve as a temporary bridge, the long-term sustainability of this approach remains in question.
