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Aug. 11, 2026 09:22AM PST
The funding package seeks to accelerate Washington's strategy to buildout the American critical mineral supply chains.
Sergey / Adobe Stock
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.
Pentagon directives, rare earth processing add momentum
Parallel to the funding packages, the Department of War has intensified its legislative and financial push to insulate the domestic defense industrial base from foreign supply shocks.
Under Executive Order 14415, signed by President Trump on July 20, the Pentagon is moving to close statutory loopholes that historically permitted contractors to use "non-availability" waivers to source strategic metals like tungsten from geopolitical adversaries.
Beginning January 1, 2027, defense prime contractors and subcontractors at every tier must map supply chains back to the raw material level and submit rigorous mitigation plans, facing potential contract termination or suspension for non-compliance.
To eliminate midstream vulnerabilities further down the value chain, the Pentagon's Office of Strategic Capital issued a US$500 million conditional loan commitment to Phoenix Tailings.
The capital anchors an approximate US$1 billion public-private initiative to construct the "Freedom Facility," a specialized domestic rare earth separation and metallization plant slated to begin operations in 2028.
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Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
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Giann Liguid is a graduate of Ateneo De Manila University with an AB in Interdisciplinary Studies. With a diverse writing background, Giann has written content for the security, food and business industries. He also has expertise in both the public and private sectors, having worked in the government specializing in local government units and administrative dynamics.
When he is not chasing the next market headline, Giann can most likely be found thrift shopping for his dogs.
When he is not chasing the next market headline, Giann can most likely be found thrift shopping for his dogs.
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Giann Liguid is a graduate of Ateneo De Manila University with an AB in Interdisciplinary Studies. With a diverse writing background, Giann has written content for the security, food and business industries. He also has expertise in both the public and private sectors, having worked in the government specializing in local government units and administrative dynamics.
When he is not chasing the next market headline, Giann can most likely be found thrift shopping for his dogs.
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