US President Donald Trump has announced a series of investments aimed at expanding domestic production of critical minerals and strengthening the country’s defence supply chains.
Addressing more than 200 mining executives, investors, educators and politicians at a State Department roundtable, Trump said the United States needed to regain its position as a global leader in mineral production.
Among the investments announced was a $1.4 billion conditional loan from the Defence Department’s Office of Strategic Capital to Sila Nanotechnologies, which produces components for lithium-ion batteries.
The office also approved a $400 million conditional loan for scandium producer Sunrise Energy Metals and a $150m loan for magnet developer Niron Magnetics.
The US Export-Import Bank will provide $58m in financing to Westwater Resources, Global Advanced Metals and 5E Advanced Materials.
“Critical minerals are the raw materials of American strength,” Trump said, adding that the administration wanted essential minerals to be mined, processed and manufactured domestically.
The administration is seeking to expand domestic supplies of critical minerals to replenish US weapons stockpiles and reduce dependence on China.
Minerals such as rare earths, tungsten, germanium and scandium are used in the production of precision-guided missiles, fighter aircraft, armoured vehicles, infrared sensors and other advanced defence systems.
US officials have highlighted concerns over supply constraints, particularly after the depletion of weapons stocks during the ongoing US-Iran conflict.
Several mining industry executives attending the meeting included representatives from Lithium Americas, NioCorp, Energy Fuels and MP Materials, which have received or are seeking government support for domestic mining and processing projects.
Trump has also backed plans to expand deep-sea mining and previously indicated that the United States could issue international seabed mining licences without relying on the UN-backed International Seabed Authority.
The administration also announced new funding for US mining schools as part of efforts to address a shortage of skilled workers in the sector.
The Department of Energy said it would provide $100m in grants to strengthen mining education programmes and aims to double the number of mining-related graduates from US universities within two years.
The Pentagon separately announced $80m for projects at three mining schools.
US officials have pointed to 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 $12bn strategic minerals stockpile, supported investments in US mining and processing companies and sought to reduce defence contractors’ dependence on Chinese supplies.
The administration says greater government support is needed to counter decades of Chinese investment that have given Beijing a dominant position in the production and processing of several strategic minerals.
Australia also welcomed the US loan to Sunrise Energy Metals, which is developing a scandium project in New South Wales. Australian Resources Minister Madeleine King said the project contains the world’s largest known scandium resource and has applications in aerospace, defence and clean energy.
