The U.S. Department of Energy has announced close to $1 billion in funding opportunities for stimulating domestic mining, processing, and manufacturing ventures involving critical minerals in a bid to reduce the country’s dependence on imports.
About half of the total will be spent on battery manufacturing and recycling, despite the Trump administration’s negative attitude to electric vehicles, which drove battery tech growth during the Biden administration.
The money will be granted to projects focusing on battery metal mining, including, besides lithium, also nickel, copper, aluminum, and graphite, as well as rare earth elements used in batteries. The Department of Energy requires a minimum 50% co-funding commitment by corporations applying for federal funding under the new program.
Some of the initiatives included focus on rare earth magnet mining and processing, including gallium, germanium, and silicon carbide, where China is currently the undisputed global leader. The funding pot will also finance lithium extraction, the Department of Energy said.
“For too long, the United States has relied on foreign actors to supply and process the critical materials that are essential to modern life and our national security,” Energy Secretary Chris Wright said.
“Thanks to President Trump’s leadership, the Energy Department will play a leading role in reshoring the processing of critical materials and expanding our domestic supply of these indispensable resources.”
The Trump Administration has made American production and refining of critical minerals and rare earths a top priority and is pursuing minerals deals with various countries to get access to the supply of the elements essential to the manufacturing of everything from smartphones and electric cars to F-35 fighter jets.
China holds a dominant global position in the supply of critical minerals and rare earths, but its grip on the value chain – minerals processing and magnet production – is even tighter.
By Irina Slav for Oilprice.com
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