The US government will invest $3 billion in critical minerals and battery projects as part of President Donald Trump’s efforts to expand domestic production, strengthen defence supply chains and reduce reliance on China.
Trump made the announcement on Friday during a State Department roundtable attended by more than 200 mining executives, investors, educators and politicians. He said the initiative would help restore the United States’ position as a major global minerals producer.
“We’re reclaiming America’s rightful place as the minerals superpower of the world,” Trump said.
Among the investments announced was a $1.4 billion conditional loan from the Defence Department’s Office of Strategic Capital to Sila Nanotechnologies, a company that produces components for lithium-ion batteries. The OSC also approved a $400 million conditional loan for scandium miner Sunrise Energy Metals and $150 million for magnet developer Niron Magnetics.
The US Export-Import Bank is also providing $58 million in loans to Westwater Resources, Global Advanced Metals and 5E Advanced Materials.
“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.
Defence needs drive demand
The administration is seeking greater access to critical minerals to replenish US weapons stockpiles depleted during the conflict with Iran and to reduce dependence on Chinese supply chains.
Trump’s meeting with mining executives also highlighted the growing importance of domestic mineral production for national security. Several industry leaders presented gifts to the president, including a gold replica of a seabed mineral nodule from American Ocean Minerals and magnets manufactured by rare earths company MP Materials for General Motors.
Other companies represented at the event included Lithium Americas, NioCorp and Energy Fuels, all of which are involved in developing US or allied supplies of strategic minerals.
US military forces have used significant quantities of precision-guided missiles and air-defence interceptors during the five-month-old US-Iran war. Defence officials and lawmakers have warned that rebuilding some stockpiles could take years because of production limitations, although the Trump administration has rejected claims of major shortages.
Minerals such as rare earths, tungsten, germanium and scandium are used in the production of advanced weapons, including precision-guided missiles, fighter jets, armoured vehicles and infrared sensors.
US seeks to expand mining workforce
The administration is also investing in the education and training needed to expand the domestic mining sector.
The Department of Energy announced $100 million in grants for educational programmes and set a target of doubling the number of mining graduates from US universities within two years. The Pentagon separately announced $80 million for projects at three American mining schools.
Officials have cited China’s extensive network of mining universities as one factor behind its dominance in global mineral production.
Since returning to office, Trump has launched a $12 billion strategic minerals stockpile, supported equity investments in companies developing mines and processing facilities, and taken steps to reduce defence contractors’ dependence on Chinese mineral supplies.
The administration argues that government intervention is necessary after decades of Chinese investment gave Beijing a dominant position in the extraction and processing of several strategic minerals.
Australia welcomed the latest US support for Sunrise Energy Metals. Resources Minister Madeleine King said the company’s project contains the world’s largest and highest-grade known scandium resource.
“The Sunrise Scandium Project hosts the world’s largest and highest-grade known scandium resource, which has a range of vital aerospace, defence and clean energy applications,” King said.
