Take that Canada, you with your strategic maple syrup reserve.
An exclusive from Reuters, August 21:
The Trump administration is considering a plan to reallocate at least $2 billion from the CHIPS Act to fund critical minerals projects and boost Commerce Secretary Howard Lutnick's influence over the strategic sector, two sources familiar with the matter told Reuters.The proposed move would take from funds already allocated by Congress for semiconductor research and chip factory construction, avoiding a fresh spending request as it seeks to reduce U.S. dependence on China for critical minerals used widely in the electronics and defense industries.Boosting Lutnick's role over critical minerals financing would also help centralize the administration's approach to the sector, a push sought by White House officials after the rollout of
the Pentagon investment in rare earths company MP Materials (MP.N), last month sparked questions about the U.S. government's minerals strategy, one source said.The White House did not respond to requests for comment. Pentagon officials were not immediately available to comment. MP Materials declined to comment.
The Commerce Department oversees the $52.7 billion CHIPS Act, formally known as the CHIPS and Science Act. The act, signed into law by then-President Joe Biden in 2022, has provided funding so far for research while also seeking to lure chip production away from Asia and boost American domestic semiconductor production.But since taking office in January, Trump has moved to change the CHIPS Act - legislation he has called "a horrible, horrible thing" that amounts to a giveaway to companies - largely by renegotiating grants to chipmakers.Repurposing some funds for mining-related projects would align in part with the spirit of the CHIPS Act as the semiconductor industry requires abundant supplies of germanium, gallium and other critical minerals over which China has tightened its market control, said the sources, who are not permitted to speak publicly about the deliberations."The administration is creatively trying to find ways to fund the critical minerals sector," said the first source. The plans are under discussion and could change, the sources added.Mining companies themselves could benefit, but also processing and recycling firms. Most of the minerals considered critical by the U.S. government are not processed inside the country....
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Also at Reuters August 21 - US Defense Department to buy cobalt for up to $500 million
