Mentioned:
MP -9.59%
America is urgently trying to reduce their dependence on critical minerals supply from China. Which is exactly why the Department of Energy wants to pour a billion dollars into American companies.
What’s happening:
- The United States Department of Energy has officially announced new plans to pour $1B USD into accelerating the domestic production of rare earth elements and critical minerals
By the numbers:
- $500M USD of the new proposed funding will be allocated to battery manufacturing, processing and recycling
- $150M USD will go towards scaling up the domestic supply chain of rare earth elements and rare earth magnet production
Why it matters:
- The United States of America has been making a concentrated effort to reduce their dependence on China for rare earth elements and critical minerals, which previously has led to President Donald Trump signing new executive orders focused on investigating the national security risks of relying on foreign countries for rare earth elements and accelerating mining projects located within America
Going deeper:
- The Pentagon has also been aggressively pouring capital into rare earth companies lately for national security and defense purposes, including making major waves with their first ever direct equity investment into MP Materials (NYSE: MP) of $400M USD
The fine print:
- The new $1B USD funding from the Department of Energy will still require regulatory approvals and final budget appropriations before it can start being allocated to companies
