US president Donald Trump plans a $700 million investment to revive America’s coal industry, invoking wartime-era authority to channel federal support into what he described as a strategic energy sector.

The initiative will be financed through the Defense Production Act, a Cold War-era law that allows the US president to direct resources toward industries considered essential to national security. Trump said the move is aimed at strengthening energy supply and easing cost pressures on American households.

"So today we're taking historic action to bring down the price of energy and the cost of living for all Americans with the power of clean, beautiful coal," Trump said at the White House on Thursday.

Under the program, $500 million will be used to preserve 14 existing coal plants and establish a new export terminal in California. The Department of Energy will also allocate $200 million for new coal plants in Alaska and West Virginia, marking the first such developments in the country since 2013.

"As a result of the $700m investment that I'm announcing today, we will protect 14 coal plants and 42 coalmines, a tremendous number, and build two new coal plants and one massive new export terminal," Trump said.

The project is projected to create thousands of jobs, including about 1,400 positions tied to a coal export terminal in Oakland, California. Officials said the broader program could support around 14,000 jobs across coal-producing and energy-linked states.