US Invests $3 Billion in Mineral Production for the Arms Industry

US President Donald Trump announced on Friday a government investment of approximately $3 billion in critical mineral and battery projects. The move is part of a broader policy to strengthen domestic production and ensure the national and industrial security of the USA, according to a report by CNBC.

This comes in light of the growing needs of the American military and against the backdrop of reports regarding a shortage of missiles and ammunition following the war with Iran. The announcement was made before more than 200 mining executives, academics, investors, and politicians at a discussion held at the State Department.

Trump claimed that the USA is "reclaiming its place as the world's mineral superpower," noting that the field has not received sufficient attention from Washington in recent years.

As part of the announcements, the Department of Defense reported a loan of approximately $1.4 billion to Sila Nanotechnologies, which manufactures components for lithium-ion batteries. Additionally, loans of $400 million were granted to the mining company Sunrise Energy Metals, which is developing a scandium mine in Australia, and $150 million to Niron Magnetics, which develops magnets. The Export-Import Bank of the United States also announced a loan of $58 million to three other companies.

Trump emphasized that minerals are the "raw materials of American power," necessary for everything from advanced weapons to vehicles, and called for producing, refining, and manufacturing them within the USA. The growing demand for minerals is linked to the need to replenish stocks of precision weapons depleted during the conflict with Iran, as well as to reduce the USA's dependence on Chinese supply chains.

Sources in the Pentagon noted that minerals such as rare earth metals, tungsten, germanium, and scandium are essential for the production of guided missiles, fighter jets, armored vehicles, and infrared sensors. In recent days, Trump announced the blocking of exports of tungsten scrap and battery waste as part of an attempt to reduce dependence on China.

Since returning to office, Trump has launched a strategic mineral stockpile worth $12 billion and supported capital investments in companies developing mines and processing facilities in the USA. Furthermore, the Department of Energy announced a grant of $100 million to strengthen mining curricula at 14 accredited academic institutions, with the goal of doubling the number of graduates in the field within two years. The Pentagon will add funding of $80 million to three additional institutions.