US proposes nearly US$1 billion in funds for critical minerals, materials

THE Trump administration is proposing nearly US$1 billion in funding to speed the development of U.S. critical minerals and materials, used in everything from electric vehicle batteries to semiconductors, the Energy Department said on Wednesday.

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The US plans to fund over US$900 million to strengthen domestic mining, processing, and manufacturing of critical materials.
The move supports Trump's energy development order and aims to reduce dependence on countries like China.
Funding includes support for battery recycling, rare earth elements, and mineral byproducts from industrial processes.

The department intends to offer funding to advance and scale up mining, processing and manufacturing technologies in the critical minerals and materials supply chains, sectors that have been dominated by China and other countries, the statement 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," said Energy Secretary Chris Wright.

The department said the move is aligned with President Donald Trump's executive order on maximizing energy development.

The department's Office of Manufacturing and Energy Supply Chains (MESC) intends to offer up to US$500 million in funding to expand U.S. critical minerals and materials processing and battery manufacturing and recycling.

MESC also intends to offer up to US$135 million in funding to support the domestic supply chain for rare earth elements, by demonstrating the commercial viability of methods to refine and recover the minerals from mining tailings.

The department's Office of Fossil Energy and Carbon Management also intends to announce about US$250 million in financial assistance for plants, including coal facilities, that have the potential to produce mineral byproducts from industrial processes.

Other funding includes up to US$50 million to support processes in the rare earth magnet supply chain, such as refining and alloying gallium, germanium and silicon carbide for use in semiconductors.