President Donald Trump announced a $3 billion investment by the US federal government to expand domestic production of critical minerals and battery projects on August 7, 2026, at a roundtable held at the US State Department in Washington, DC [1, 2, 3, 4]. The event included over 200 mining industry executives, educators, investors, and government officials, with senior Cabinet members like Interior Secretary Doug Burgum and Secretary of State Marco Rubio attending [1, 4, 5].
The funding aims to enhance national security, reduce dependence on Chinese supply chains, and support industry growth amid ongoing geopolitical tensions including a conflict involving Iran [1, 4, 5]. Critical minerals such as rare earth elements, scandium, tungsten, and germanium are vital for manufacturing advanced weapons, aerospace, and automotive technologies [1, 4]. Trump stated, "We’re putting our miners back to work, and we’re reclaiming America’s rightful place as the minerals superpower of the world," adding, "We’re making mining great again!" [1, 6].
The US Department of Defense’s Office of Strategic Capital will provide conditional loans totaling $1.95 billion. Sila Nanotechnologies will receive $1.4 billion to produce lithium-ion battery components, Sunrise Energy Metals will get $400 million for scandium mining in Australia’s New South Wales, and Niron Magnetics will obtain $150 million to develop magnets [1, 3, 4]. Sunrise Energy Metals' scandium mine is the world’s first primary mine of this rare mineral and will partially supply Lockheed Martin [4, 7].
Additionally, the US Export-Import Bank will lend $58 million to US-based mining companies including Westwater Resources, Global Advanced Metals, and 5E Advanced Materials for critical minerals projects [1, 7]. The US Energy Department will invest $100 million to promote mining education and career development, aiming to double the number of university mining graduates within two years. The Pentagon will add $80 million to fund three mining schools to address the industry’s talent shortage amid an aging workforce and low graduation rates compared to China [4, 5, 6].
Trump emphasized the economic and security benefits, saying, "These projects will create thousands of jobs and promote our economic stability and security," and noted the goal to mine, refine, and manufacture these materials domestically to reduce reliance on hostile foreign nations [2, 3].
Since Trump took office, the US government has committed over $10 billion toward boosting the domestic rare earth and permanent magnet industries [4]. The urgency for secure supply chains has grown due to supply constraints for munitions used in the conflict with Iran [5, 8].
The investments announced on August 7 mark the latest step in a broader $3 billion plan to strengthen US supply chains for critical minerals and battery technologies [1].
