Dec 18 (Reuters) - Advisers to incoming U.S. President

Donald Trump are recommending he waive environmental reviews for

federally funded critical minerals projects to boost domestic

production of materials used in electric vehicles, electronics

and weapons, according to a document seen by Reuters.

Implementation would reflect a major shift in how Washington

reviews proposed mines on federal lands and aims to ensure that

projects receiving loans, grants or other government support are

able to help the U.S. cut dependence on China, the world's

largest miner and processor of lithium, cobalt and other

critical minerals.

The advisers, tasked by Trump's transition team to develop

policy ideas around electric vehicle supply chains, urged Trump

to waive requirements under the National Environmental Policy

Act (NEPA) to expedite permitting and construction reviews for

production of critical minerals, batteries and magnets, the

document showed. NEPA applies to projects on federal lands.

Trump is set to take office on Jan. 20.

Jason Miller, a senior adviser for the transition, said

Trump has not indicated his stance on the issue and noted the

recommendations come from "outsiders who have no role in

charting administration policy."

Trump often pledged on the campaign trail to cut what he

considers bureaucratic overreach. Last week, he said he would

expedite permits for any company investing more than $1 billion

in the U.S. Most proposed mines in the country cost more than

that.

First enacted in 1970, NEPA is the bedrock U.S.

environmental law, requiring reviews for major projects that

receive federal permits or funding. The law can involve review

from numerous federal agencies and is not overseen by any one

office or official, adding to its complexity.

NEPA reviews are frequently challenged, and litigation can

delay construction on projects for years, to the consternation

of mining companies and Republican officials. A president cannot

unilaterally limit lawsuits against mining projects although he

could work with Congress to do so.

Proposed U.S. critical minerals projects from Antofagasta ( ANFGF )

, Rio Tinto, BHP, Perpetua Resources ( PPTA )

and others have been in regulatory review for more than

a decade.

During his first term, Trump and then-Interior Secretary

David Bernhardt limited NEPA reviews to no more than 300 pages

and said they should be done faster, describing the process as

"needlessly complex." Those changes were reversed under

President Joe Biden.

If Trump adopts the recommendations, it could expedite

billions of dollars in federally-backed projects, including

lithium mines and processing facilities. This could help even

the playing field with rival China, which has dominated global

markets with supplies of cheap metals and blocked exports of

some materials to the U.S.

Conservation and environmental groups contend that NEPA

helps ensure all voices are heard when access to federal lands

is granted, and that climate change and environmental justice

considerations are part of the review process.

Additionally, some conservation groups have complained that

Washington is de facto approving mines when federal grants or

loans are issued and essentially leap-frogging the NEPA review

process.

Mining companies do not pay royalties to Washington when

they extract metals from federal land, a quirk of federal law

stemming from the General Mining Law of 1872. Oil companies, by

contrast, pay royalties when they operate on federal land.

Trump was broadly supportive of mining during his first term

and approved mines from Lithium Americas ( LAC ) and others,

but he did take steps to block a major Alaska mining project

from Northern Dynasty Minerals ( NAK ).

The incoming president has hinted at other actions that

could help U.S. miners, including imposing tariffs on all

battery materials globally, with exemptions negotiated for

allies.

Multiple U.S. miners have said they would prefer to have the

permitting process reformed rather than tariffs issued broadly,

a step one executive told Reuters would reflect a "sledgehammer"

approach to trade issues.