The U.S. government will invest $3 billion in critical minerals and battery projects as part of the Trump administration’s effort to expand domestic production, strengthen national security and reduce reliance on foreign supply chains, President Donald Trump said Friday.
“We’re reclaiming America’s rightful place as the minerals superpower of the world,” Trump told more than 200 mining executives, investors, educators and political figures gathered at the State Department for a roundtable focused on the U.S. mining industry.
Trump announced several major investments during the meeting, including a $1.4 billion conditional loan from the Defense Department’s Office of Strategic Capital to Sila Nanotechnologies, a company that produces components for lithium-ion batteries.
The Office of Strategic Capital also approved a $400 million conditional loan for scandium producer Sunrise Energy Metals and a $150 million conditional loan for magnet manufacturer Niron Magnetics.
Meanwhile, the U.S. Export-Import Bank will provide $58 million in financing to Westwater Resources, Global Advanced Metals and 5E Advanced Materials.
“Critical minerals are the raw materials of American strength,” Trump said, stressing that they are essential for everything from advanced weapons systems to automobiles. He said the administration wants these materials to be mined, processed and manufactured within the United States.
Interior Secretary Doug Burgum, Secretary of State Marco Rubio, Commerce Secretary Howard Lutnick and National Security Council official David Copley attended the announcement.
Critical minerals become a national security priority
The Trump administration is seeking to secure critical mineral supplies needed to replenish U.S. weapons stockpiles and reduce dependence on China, particularly following the prolonged conflict with Iran.
Several industry executives attending the event presented gifts to Trump. Tom Albanese, chairman of deep-sea mining company American Ocean Minerals, gave the president a gold replica of a seabed nodule that the company hopes to extract from the Pacific Ocean.
Trump said last year that he could consider bypassing the U.N.-backed International Seabed Authority to issue licenses for international seabed mining.
Jim Litinsky, CEO of rare-earths producer MP Materials, presented Trump with magnets manufactured for General Motors at the company’s Texas facility. MP Materials receives financial support from the Pentagon.
Other participants included executives from Lithium Americas, which is developing what is expected to become the largest lithium mine in the United States; NioCorp, which is developing a scandium mine intended to supply defense contractor Lockheed Martin; and Energy Fuels, which received a $725 million conditional loan from the Office of Strategic Capital in June.
U.S. forces have used large numbers of precision-guided missiles and air-defense interceptors during the five-month conflict with Iran. Defense officials and lawmakers have warned that rebuilding some weapons inventories could take years because of existing production constraints, although the Trump administration has disputed reports of significant shortages.
Pentagon officials and defense companies say minerals such as rare earth elements, tungsten, germanium and scandium are crucial for producing precision-guided missiles, fighter jets, armored vehicles, infrared sensors and other advanced military systems.
U.S. mining schools receive additional funding
The Department of Energy also hosted representatives from all 14 accredited U.S. mining schools on Friday as part of an effort to promote careers in the industry and encourage more students to pursue mining-related fields.
The department announced $100 million in grants to expand educational programs and set a goal of doubling the number of mining graduates at U.S. universities within two years.
“We need to work on some systemic changes to how we as a nation want to offer our brightest students an opportunity to participate in this industry,” Assistant Energy Secretary Audrey Robertson said.
The Pentagon separately announced $80 million in funding for projects at three U.S. mining schools.
U.S. officials have cited China’s extensive network of mining universities as one of the factors contributing to Beijing’s dominance of global mineral production.
Since returning to office, Trump has launched a $12 billion strategic minerals stockpile, backed equity investments in companies developing U.S. mining and processing facilities, and pursued measures aimed at reducing the defense industry’s dependence on Chinese mineral supplies.
The administration argues that government support is necessary to counter decades of Chinese investment that have allowed Beijing to establish a dominant position in the mining and processing of many strategic minerals.
Australia welcomed the Trump administration’s loan to Sunrise Energy Metals on Saturday. The company is developing a scandium project in New South Wales.
“The Sunrise Scandium Project hosts the world’s largest and highest-grade known scandium resource, which has a range of vital aerospace, defense and clean energy applications,” Australian Resources Minister Madeleine King said.
