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

The U.S. Export-Import Bank is lending $58 million to three critical-mineral companies as part of President Donald Trump's push to reduce the country's reliance on Chinese supplies.

The financing, revealed in a document seen by Reuters, aims to strengthen American mining and processing capacity.

Why is the US backing these mineral projects?

The funding aims to secure domestic supplies of minerals used in weapons, electronics and batteries, reducing US dependence on Chinese imports. ExIm chairman John Jovanovic said critical mineral security is a matter of national security. The financing is designed to fortify domestic supply chains and protect American industries from potential disruptions.

The funding was timed to coincide with Trump's meeting in Washington on Friday with executives from some of the world's largest mining companies. The meeting was intended to underscore the country's need for better supplies of minerals used to build weapons and electronics. Jovanovic said the loans would help "restore crucial industries that support well-paying American jobs and safeguard everyday Americans from supply shocks."

Which companies are receiving funding?

Westwater Resources will receive a $25 million loan for its Alabama graphite mine and processing facility, which would become the country's first source of natural graphite. Graphite is the largest metal by volume used to build lithium-ion batteries. The U.S. currently produces some synthetic graphite from petroleum coke, a byproduct of oil refining, though battery manufacturers often prefer one version over the other depending on several factors.

ExIm is also lending $25 million to privately held Global Advanced Metals to expand its processing of tantalum and niobium. The U.S. does not mine either metal domestically, leaving it reliant on foreign supply. The company mines both metals in Australia and processes them in Pennsylvania.

What is the funding used for beyond graphite?

Tantalum is used mainly to make capacitors for smartphones, automobiles and other electronics, while niobium serves as an alloy to harden steel for pipelines and airplanes. Both metals are essential to sectors the US government has flagged as strategically important. Their supply chains currently depend entirely on imports processed domestically from foreign-mined ore.

5E Advanced Materials will receive an $8 million loan to boost production of boron, which the U.S. government added to its list of critical minerals last year. Boron 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, and 5E's California boron project is slated to begin commercial production in 2028.