Trump announces $3 billion push for critical minerals to strengthen US defense
The US will invest $3 billion in critical minerals and battery projects to boost domestic production and national security.
President Donald Trump announced on Friday that the federal government will invest $3 billion in critical minerals and battery projects, framing the move as essential for national security and industrial independence. Speaking at a State Department roundtable attended by over 200 mining executives, educators, and officials, Trump said the US must reclaim its position as a global minerals leader.
"We're reclaiming America's rightful place as the minerals superpower of the world," Trump said, adding that critical minerals power everything from advanced weaponry to automobiles and should be mined and refined domestically.
The investments include a $1.4 billion conditional loan from the Defense Department's Office of Strategic Capital to Sila Nanotechnologies, a lithium-ion battery parts maker. The office also extended a $400 million conditional loan to scandium miner Sunrise Energy Metals and $150 million to magnet developer Niron Magnetics. The Export-Import Bank will lend $58 million to Westwater Resources, Global Advanced Metals, and 5E Advanced Materials.
The push comes as the US seeks to replenish weapons stockpiles depleted during the five-month Iran conflict. Defense officials say minerals such as rare earths, tungsten, germanium, and scandium are vital for precision-guided missiles, fighter aircraft, and infrared sensors. The administration has also sought to reduce dependence on Chinese supply chains, which dominate global mining and processing.
Several executives attended with symbolic gifts. Tom Albanese of deep-sea mining firm American Ocean Minerals presented Trump with a gold replica of a seabed nodule, while Jim Litinsky of MP Materials gave magnets produced for General Motors at the company's Texas plant.
The Department of Energy also announced $100 million in grants for mining schools, aiming to double the number of mining-related graduates within two years. The Pentagon will fund $80 million in projects at three universities. Officials highlighted China's extensive mining education network as a key advantage in global mineral production.
Since returning to office, Trump has launched a $12 billion strategic minerals stockpile and backed equity investments in domestic mining and processing ventures.