Trump administration to invest $3 billion in critical minerals projects

The US government plans to invest $3 billion in critical minerals and battery projects as Washington seeks to expand domestic production, strengthen defence supply chains and reduce reliance on China.President Donald Trump announced the investments during a roundtable with more than 200 mining executives, investors, educators and political leaders at the State Department on Friday,according to media reportsCalling minerals essential to US economic and national security, Trump said the administration wanted critical materials to be mined, processed and manufactured within the United States.
Among the announced measures is a $1.4 billion conditional loan from the Defence Department’s Office of Strategic Capital (OSC) to Sila Nanotechnologies, which produces components for lithium-ion batteries.The OSC has also extended a $400 million conditional loan to scandium developer Sunrise Energy Metals and a $150 million conditional loan to magnet manufacturer Niron Magnetics.The US Export-Import Bank is separately providing $58 million in loans to Westwater Resources, Global Advanced Metals and 5E Advanced Materials.The administration is targeting minerals such as rare earths, tungsten, germanium and scandium, which are used in advanced weapons, aircraft, armoured vehicles, sensors and other defence technologies.
Iran conflict adds urgency
The push comes as the US seeks to replenish weapons stockpiles following the ongoing Iran conflict. US defence officials and lawmakers have warned that rebuilding supplies of precision-guided missiles and air-defence interceptors could take years because of production constraints.The Trump administration has also sought to reduce the defence industry's dependence on Chinese mineral and processing supply chains.Several mining and mineral companies attended the White House-backed industry meeting, including MP Materials, Lithium Americas, NioCorp and Energy Fuels.
The administration is also focusing on developing a skilled workforce for the domestic mining industry.The Department of Energy announced $100 million in grants to strengthen mining education programmes and set a goal of doubling the number of mining-related graduates from US universities within two years.The Pentagon separately announced $80 million for projects at three US mining schools.
Officials have highlighted China's extensive mining education network as one factor behind its dominant position in global mineral production.Since returning to office, Trump has pursued several measures to expand the US strategic minerals sector, including a $12 billion strategic minerals stockpile, government-backed investments in domestic mining and processing projects, and efforts to limit defence contractors' dependence on Chinese supplies.Australia has welcomed the latest support for Sunrise Energy Metals, whose New South Wales project is aimed at developing a major domestic source of scandium for aerospace, defence and clean-energy applications.