US backs critical mineral projects with $500m

The US Department of Energy has awarded $500 million in grants to seven companies involved in critical mineral projects, as part of an ongoing effort to bolster the nation's domestic supply chain. This latest funding round aims to support lithium, cobalt, and other minerals essential for battery manufacturing, recycling, and production.

Energy Secretary Chris Wright emphasized the importance of reducing America's reliance on foreign sources for critical materials that underpin the economy, energy security, and national security.

The grants will be allocated to projects building and operating facilities in Utah and elsewhere. Lilac Solutions will receive $100 million to construct a lithium extraction and refining plant on the Great Salt Lake, expected to produce 5,000 metric tonnes annually starting in 2028. Jervois will receive $100 million for a cobalt refinery, a crucial metal used in weapons, batteries, and electronics.

Nth Cycle will get $100 million to process black mass, a battery-metal scrap previously blocked from export by the administration.

Additional funding will support Princeton NuEnergy's efforts to renew battery-grade cathode materials, Arcanum Venture's production of battery-grade ethylene carbonate, Elevated Materials' development of fast-charging battery materials, and Coreshell Technologies' creation of a US gigafactory for silicon-anode battery production.

These grants come two days after the Energy Department announced a combined $162 million in funding to recover scandium, copper, antimony, rare earth elements, and other materials. President Donald Trump's administration has been encouraging private sector investment in critical minerals, framing them as vital to energy and national security.

The administration has also taken equity stakes in these companies and engaged in diplomatic initiatives like the Pax Silica initiative and the Forum on Resource Geostrategic Engagement.

In response to China's export restrictions on critical minerals, the Trump administration has invested $3 billion in mining projects, including scandium, copper, graphite, tantalum, and other materials used in advanced technologies and defense systems. The administration views these efforts as a means to reclaim America's position as the minerals superpower.