Why in the News?

• In a bid to boost coal production in the United States, President Donald Trump has designated the carbon-based fuel as a “mineral”.

What’s in Today’s Article?

• Coal as Critical Mineral (Strategic Rationale, Benefits, Rising Energy Demands, Environment Concerns, etc.)

Background

• In April 2025, President Donald Trump signed an executive order to explore the classification of coal, particularly coking coal used in steelmaking, as both a “critical mineral” and a “critical material.”
• Under the US Energy Act of 2020, a critical mineral is one essential for economic or national security and vulnerable to supply disruptions.
• By potentially including coal in this category, the administration seeks to prioritize its extraction projects and bolster domestic production, a move that aligns with Trump’s push for manufacturing resurgence and energy independence.

The Strategic Energy Rationale

• One of the key justifications for this decision is coal’s perceived role in stabilizing the power grid, especially with the rising energy demand from AI data centres.
• Renewable sources like wind and solar are variable, making them less suitable for continuous power supply.
• In contrast, coal-fired power plants offer a reliable “baseload” capacity.
• As per the executive order, coal is “abundant and cost-effective” and can meet the increasing electricity demands due to growth in AI technologies and domestic manufacturing.
• These sentiments echo broader global trends, with coal usage rising in India and China for grid balancing.

Regulatory Rollbacks and Industrial Impact

• In line with this vision, the Trump administration has relaxed several environmental regulations.
• It has removed mandates for emissions-control technologies in coal plants and cut bureaucratic hurdles around coal mining permits.
• These steps are intended to resuscitate a sector that saw its share in the US energy mix fall from 40% in 2014 to 15% in 2024.
• Such deregulation is seen as a boon for industries like steel and cement, which rely heavily on coking coal.
• The idea is to strengthen domestic supply chains and reduce import dependence, a notion also gaining traction in countries like India, where a NITI Aayog-backed study has recommended classifying coking coal as a critical mineral.

Global Energy Dynamics and AI Demand

• The push for coal is also tied to concerns about rising electricity consumption due to AI-related activities.
• The International Energy Agency (IEA) forecasts that data centre electricity usage could double by 2026.
• While companies like Google and Microsoft are shifting towards nuclear energy contracts, the government is exploring all stable and scalable options, including coal.
• In this context, coal is seen as a transitional fuel that can bridge the gap until large-scale energy storage solutions for renewables become commercially viable. 

Environmental and Climate Concerns

• Despite the economic rationale, the move has sparked concerns about environmental sustainability.
• Coal remains the most carbon-intensive fuel, and reviving its usage could significantly derail national and global net-zero targets.
• Critics argue that without parallel investment in clean technologies, such as carbon capture and storage (CCS), this coal-centric approach could reverse years of progress on emissions reductions.
• Trump’s administration has downplayed these concerns, labelling emissions standards as burdensome and technologically premature.

The Global Perspective on Critical Minerals

• Globally, there’s a growing effort to secure essential resources for energy transitions.
• The European Union already includes coal in its list of “critical raw materials.” If the US officially classifies coal under the same, it would join a small but growing club of nations re-evaluating coal’s strategic relevance.
• India, too, has acknowledged the importance of coking coal in national planning documents.
• The move underscores a broader trend where nations prioritize energy security even as they face environmental trade-offs.

Conclusion

• President Trump’s attempt to rebrand coal as a “critical mineral” signals a strategic pivot in American energy policy.
• While it may help address immediate power supply and industrial demands, it raises serious concerns about climate commitments.
• The global energy landscape is at a crossroads, and how nations balance energy security with environmental sustainability will shape the next decade.