Trump Administration Eyes $2 Billion to Transform Critical Minerals Strategy

In a strategic move, the Trump administration is contemplating reallocating $2 billion from the CHIPS Act to invigorate the U.S. critical minerals sector, sources tell Reuters. This blueprint aims to fortify Commerce Secretary Howard Lutnick's influence, aligning with reducing dependency on Chinese mineral imports vital for electronics and defense.

This potential reallocation could streamline the administration's critical minerals strategy, following mixed signals after the Pentagon's recent investment in MP Materials. The White House has yet to comment on these deliberations; however, Commerce Department officials could soon oversee significant funding decisions in this sector.

The CHIPS Act, originally designed to boost domestic semiconductor production, could see funds redirected to U.S.-based mining and processing projects, contemplating alternative avenues to fulfill the industry's mineral supply demands amid Chinese market dominance. White House officials aim to expedite this funding reallocation, ensuring swift action.

(With inputs from agencies.)