Trump administration to invest $3 billion into minerals projects to boost US defense supply chains
By Jarrett Renshaw and Ernest Scheyder WASHINGTON, - U.S. President Donald Trump said on Friday the federal government would invest $3 billion into multiple critical
By Jarrett Renshaw and Ernest Scheyder WASHINGTON, - U.S. President Donald Trump said on Friday the federal government would invest $3 billion into multiple critical minerals and battery projects as part of a push to increase domestic production and boost national security and industrial policy. "We're reclaiming America's rightful place as the minerals superpower of the world," Trump told more than 200 mining executives, educators, investors and fellow politicians at a roundtable at the State Department aimed at supporting the industry, which he said had not received enough attention from Washington in recent years. He announced a slew of investments during his speech, including a $1.4 billion conditional loan from the U.S. Department of Defense's Office of Strategic Capital for Sila Nanotechnologies, which makes lithium-ion battery parts. The OSC also extended a $400 million conditional loan to scandium miner Sunrise Energy Metals and a $150 million conditional loan to magnet developer Niron Magnetics. The U.S. Export-Import Bank will lend $58 million to Westwater Resources, Global Advanced Metals and 5E Advanced Materials, which Reuters reported earlier on Friday.
"Critical minerals are the raw materials of American strength that power everything from advanced weaponry to automobiles, and we want these essential products to be mined, refined and made right here in the USA," Trump said. Interior Secretary Doug Burgum, Secretary of State Marco Rubio, Commerce Secretary Howard Lutnick and Security Council official David Copley also attended. WEONS STOCKPILES DRIVE MINERAL DEMAND The White House needs critical minerals to replenish weapons stockpiles depleted during the Iran conflict and reduce U.S. dependence on Chinese supply chains. Several executives came with gifts for Trump. Tom Albanese, chairman of deep-sea mining firm American Ocean Minerals, gave Trump a gold replica of a nodule that the company hopes to mine from the Pacific seabed. Trump last year said he may bypass the United Nations-backed International Seabed Authority and issue international seabed mining licenses. Jim Litinsky, CEO of rare earths firm MP Materials, which is financially supported by the Pentagon, gave Trump magnets that had been produced for General Motors in the company's Texas plant.
Other attendees included executives from Lithium Americas, which is building the largest U.S. lithium mine, NioCorp, which is building a scandium mine to supply defense contractor Lockheed Martin, and Energy Fuels, which received a $725 million OSC conditional loan in June. U.S. forces have burned through large numbers of precision-guided missiles and air-defense interceptors during the five-month-long Iran war. Defense officials and lawmakers have warned that replenishing some inventories could take years given existing production constraints, even as the Trump administration has disputed reports of significant shortages. Supplies of minerals including rare earths, tungsten, germanium and scandium are essential for manufacturing precision-guided missiles, fighter aircraft, armored vehicles, infrared sensors and other advanced weapons systems, according to Pentagon officials and defense companies. MINING SCHOOLS RECEIVE FUNDING BOOST The Department of Energy also on Friday hosted representatives from all 14 accredited U.S. mining schools to promote mining careers and encourage more students to enter the field. The department announced $100 million in grants to help boost educational programs and set a goal of doubling the number of mining-related graduates at the nation's universities within two years.
The BriefWire