Trump Unveils $3B Push for Critical Minerals and Defence Supply Chains
Synopsis
The administration will invest in mining and battery projects to expand domestic production, strengthen military supply chains and reduce reliance on foreign critical minerals.
The U.S. government is investing approximately $3 billion in critical minerals and battery projects as President Donald Trump aims to boost domestic supply for defence and cut its dependence on foreign sources.
The package was announced by Trump at a State Department roundtable on Aug. 7, which brought over 200 mining chiefs, investors, educators and government leaders together.
The Department of Defense's (DoD) Office of Strategic Capital (OSC) has provided significant conditional loans as part of the funding.
US Funding Includes Australian Miner
The biggest one is a $1.4 billion in conditional loan to Sila Nanotechnologies. The department is also providing $400 million to Australian-listed Sunrise Energy Metals for its scandium project and $150 million to Niron Magnetics.
Another $58 million will be available through three projects from the US Export-Import Bank.
The funding for Westwater Resources will be $25 million for graphite production in Alabama, $25 million for processing tantalum and niobium at Global Advanced Metals, and $8 million for boron production in California at 5E Advanced Materials.
Sunrise are developing the Syerston Scandium Project in NSW. As of June 30, 2025, it has A$47.9 million in cash and cash equivalents and a A$3.81 million net loss for the half year.
Supply Concentration Remains High
The funding is an indication of the continued concentration of global critical minerals processing. The leading country refining oil had an average share of 70% in 2025 for key energy minerals, compared to 68% in 2020, per the IEA Global Critical Minerals Outlook 2026.
China has over 90 percent of the world's supply of refined Ga, graphite, manganese, and rare earths; and Indonesia is the primary source of Ni. The IEA also said that investments in critical minerals decreased by 9% in 2025.
The USGS Mineral Commodity Summaries 2026 includes US trade and supply information on over 90 minerals and materials for US businesses. The report was first published in February 2026, and updated in May.
The announcement has been made separately for $100 million in mining education grants and the Pentagon has proposed $80 million for projects at three U.S. mining schools.
Source: Reuters
Pooja Malik is a business journalist with over six years of experience covering startups, entrepreneurship, and emerging trends. She has previously worked with leading media platforms such as YourStory Media and BW BusinessWorld, where she reported on business, policy, and market developments. Currently, she serves as Editor at The Inspirepreneur Magazine, where she writes and edits stories across business, lifestyle, and travel, with a focus on clarity, accuracy, and reader relevance.
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