Trump Announces $3 Billion Critical Minerals Investment to Counter China

President Donald Trump announced $3 billion in federal investments and grants on August 7, 2026, to expand U.S. critical mineral production and battery supply chains. Unveiled during a roundtable at the State Department with executives from firms such as Rio Tinto, BHP, and Freeport-McMoRan, the initiative aims to reduce reliance on China and replenish weapons stockpiles depleted during a five-month conflict with Iran.

The funding package includes conditional loans from the Department of Defense's Office of Strategic Capital, most notably $1.4 billion for Sila Nanotechnologies, $400 million for Sunrise Energy Metals' scandium project in Australia, and $150 million for Niron Magnetics. Additional financing was provided by the Export-Import Bank, including over $1 billion for Ivanhoe Electric Inc.'s copper project in Arizona and $58 million for Westwater Resources, Global Advanced Metals, and 5E Advanced Materials.

To address labor shortages, the administration pledged more than $180 million for mining education. This includes a $100 million Department of Energy grant program for accredited mining schools and $80 million in military funding for the Colorado School of Mines, South Dakota School of Mines and Technology, and Johns Hopkins University.

These efforts are part of a broader strategy that includes a $12 billion strategic minerals stockpile and a "mine-to-magnet" supply chain initiative. The announcements precede a scheduled September visit to Washington by Chinese President Xi Jinping amid ongoing tensions over rare earth export controls.