U.S. Energy Department Classifies Steelmaking Coal as a Critical Material

The U.S. Energy Department on May 23 announced the designation of coal utilized in steelmaking as a critical material under the Energy Act of 2020. The announcement is in accordance with the executive order “Reinvigorating America’s Beautiful Clean Coal Industry,” issued last month. As part of the executive order, President Trump has made it a national priority to bolster the domestic coal industry by removing federal regulatory barriers that impede coal production and encouraging coal use to meet growing energy demands. The order also calls for increasing U.S. coal exports and ensuring that federal policy does not discriminate against coal production or coal-fired power generation.

An analysis conducted by the department found that metallurgical coal—an essential component in steel production—meets the statutory criteria for designation as a critical material. A strong steel industry underpins U.S. manufacturing, infrastructure growth, and economic resilience.

The department listed a number of criteria that coal meets to be designated as a critical material, including its unique properties to produce coke, the fuel and reactant needed for steel production using the blast furnace. Anthracite coal, primarily found in the Appalachian region, is essential to the electric arc furnace process, which produces about 70 percent of U.S. steel. Moreover, joint infrastructure and workforce supporting both metallurgical and thermal coal production are under strain from lower investment and operational capacity. Furthermore, the U.S. economy employs thousands of workers to operate over 150 metallurgical coal mines.

Aligned with the President’s proclamation on steel import adjustments, this determination advances strategic supply chain growth and reindustrialization efforts. Moreover, the designation highlights a number of threats impacting the U.S. steel sector, including a lack of investment in critical upstream materials, unreliable supply chains and foreign anti-competitive practices. The designation reflects both the fuel’s supply chain vulnerability and its essential role in the energy sector.