US critical minerals funding to withstand congressional shift, advisers say
Momentum will likely continue under a Democratic-controlled Congress, Clark Street Associates says.
The US government is intensifying its investment in critical minerals, mining, processing, and domestic manufacturing, with the momentum expected to persist under a Democratic-controlled Congress, according to advisers at Clark Street Associates. Over $5.4 billion in federal and state funding, grants, and contracts has been secured for companies involved in critical minerals, with mining and processing firms facing a potential increase in scrutiny of federal investment selection rather than a significant reduction in support.
The US Defense Logistics Agency recently allocated $2 billion to acquire strategic materials for the National Defense Stockpile. The administration is committed to pursuing critical minerals investments using existing funds and maintaining the strategic importance of reducing dependence on China. While congressional oversight may lead to greater transparency and scrutiny of investment decisions, advisers believe it will not significantly weaken near-term investment prospects.
Continued bipartisan support and cooperation with Canada are crucial for sustaining the supply chain and fostering innovation in processing and recycling technologies.
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