Key facts
- The Trump administration is investing $3 billion in critical minerals projects.
- A $1.4 billion loan from the Pentagon's OSC will fund Sila Nanotechnologies' battery material production expansion.
- Lithium Americas secured $435 million from a DOE loan for its Thacker Pass lithium project in Nevada.
- Westwater Resources received $25 million from the U.S. Export-Import Bank for graphite development.
- Niron Magnetics is set to receive up to $150 million for rare-earth-free magnet production.
- The administration previously launched Project Vault, a $12 billion initiative to stockpile critical minerals.
The Trump administration has committed $3 billion to bolster the domestic supply chain for critical minerals, a move that significantly benefits the electric vehicle (EV) sector despite the administration's past skepticism towards clean energy.
The investment package includes a $1.4 billion conditional loan from the Pentagon's Office of Strategic Capital to Sila Nanotechnologies for expanding its silicon anode battery material production in Washington state. This funding aims to increase capacity to supply over 100,000 EVs annually.
Additionally, Lithium Americas has unlocked the first $435 million of a $2.23 billion U.S. Department of Energy loan to develop the Thacker Pass lithium project in Nevada, which is projected to produce enough lithium for approximately 800,000 EVs per year upon completion in late 2027.
Other funding includes a $25 million investment from the U.S. Export-Import Bank to Westwater Resources for an Alabama graphite deposit and a conditional commitment of up to $150 million for Niron Magnetics to build a commercial-scale plant for rare-earth-free iron nitride permanent magnets.
These initiatives are part of a broader strategy to secure technological sovereignty and reduce reliance on China for battery supply chains. The administration also launched Project Vault, a $12 billion public-private initiative to stockpile critical minerals, involving institutional investors and original equipment manufacturers (OEMs) like General Motors, Boeing, Stellantis, GE Vernova, and Alphabet, who will secure rights to buy reserves at predetermined prices during market shocks.
While the administration frames these investments as crucial for defense and aerospace, EVs are the primary demand driver for critical minerals like lithium, cobalt, and nickel, making the sector a key beneficiary.