Trump Admin Unveils US$2 Billion Push for US Critical Mineral Supply

President Donald Trump unveiled over US$2 billion in federal loans, grants, and direct equity investments for domestic mining and battery projects on Friday (August 7).

The package, detailed during a State Department roundtable, targets key materials used in defense manufacturing, electric vehicle components, and AI infrastructure.

“We want these essential products to be mined, refined and made right here in the USA,” Trump told executives.

He noted that his administration has finalized nearly 160 mineral agreements totaling almost US$40 billion since January 2025, claiming that streamlined permitting has accelerated new mine openings to their fastest pace since the 1950s.

The Department of War is directing the largest share of the new funding through a specialized internal office that channels capital to private sector projects.

California-based battery manufacturer Sila Nanotechnologies secured the largest single commitment, receiving US$1.4 billion from the Pentagon to expand production of silicon-carbon battery anodes and build out a lithium-ion cell manufacturing facility.

Founded in 2011 by a former Tesla (NASDAQ:TSLA) engineer, the company will supply battery components for unmanned aerial systems, military satellites, and munitions.

The Defense Department also agreed to provide a US$400 million loan to Australia’s Sunrise Energy Metals (ASX:SRL,OTCQX:SREMF) to establish a full scandium supply chain, including a primary scandium mine.

Scandium strengthens aluminum alloys used in fighter jets and spacecraft. In exchange for the funding, the US government secured priority purchasing rights for the mine’s output.

In addition, the Pentagon committed US$150 million to Minnesota-based Niron Magnetics to manufacture rare earth-free permanent magnets for defense applications, and took an US$85.5 million direct equity stake in Standard Bauxite to secure refractory-grade bauxite for high-temperature manufacturing.

Smaller capital distributions from the Export-Import Bank of the US (EXIM) targeted domestic graphite, boron, and rare earth developers.

EXIM awarded US$25 million to Westwater Resources Inc. (NYSE:WWR) for graphite extraction in Alabama, US$25 million to Pennsylvania-based Global Advanced Materials for tantalum and niobium development, and US$8 million to 5E Advanced Materials (NASDAQ:FEAM) in California for boron production.

Overseas, the Development Finance Corporation matched a US$4.8 million investment in Harena Rare Earths (LSE:HREE) to develop a rare earth mine in Madagascar.