Trump administration to back three mineral projects with $58 million in financing

Washington: The U.S. Export-Import Bank ​is lending $58 million to three critical-mineral ​companies as part of President Donald Trump's push to wean ​the country off Chinese supplies and bolster American mining and processing, according to a document seen by Reuters.

The funding is timed to coincide with Trump's meeting in Washington on Friday ‌with executives ⁠from some ⁠of the world's largest mining companies to underscore the country's need for better supplies of ​minerals used to build weapons and electronics.

Also read: Trump administration to invest $3 billion into minerals projects to boost US defense supply chains


"Critical mineral security is national security," said John Jovanovic, ExIm's ​chairman, adding the funding aims to "fortify our supply chains, restore crucial industries that support well-paying American jobs and safeguard everyday Americans from supply shocks."

Westwater Resources will ​receive a $25 million loan for its Alabama graphite mine ⁠and processing ‌facility, in what would be the country's first source ​of so-called ​natural graphite. Graphite is the largest metal by volume used ⁠to build lithium-ion batteries.

The U.S. produces some so-called synthetic graphite ​from petroleum coke, a byproduct of oil refining. Battery manufacturers ​typically prefer one version or the other, depending on a range of factors.

ExIm is also lending $25 million to privately held Global Advanced Metals to expand processing of tantalum and niobium, neither of which the U.S. mines, making it reliant on foreign supply. The company mines the metals in Australia and processes ‌them in Pennsylvania.

Also read: Trump launches $12 billion minerals stockpile to counter China

Tantalum is primarily used to make capacitors for smartphones, automobiles and other electronics, whereas niobium is used as an ​alloy to ​harden steel for ⁠pipelines and airplanes.

And 5E Advanced Materials will receive an $8 million loan to boost production of boron, which last year was added to a list of minerals considered ​critical by the U.S. government. The metal is used in the nuclear energy industry as well as in body armor and other defense-related products. The U.S. imports most of its boron needs. 5E's California boron project is slated to begin commercial production in 2028.