The Trump administration is investing heavily in the rare minerals sector to reduce dependence on China
The Trump administration is moving from classic subsidies to direct purchases of key companies in the rare minerals sector to reduce dependence on China and secure supply chains.
The US administration is investing in the rare minerals sector. PHOTO: Shutterstock
The Trump administration is stepping up its efforts to strengthen national security with an innovative strategy in the rare minerals sector: turning federal subsidies for companies into direct equity stakes. The approach is aimed at reducing US dependence on China, which controls most global supply chains for rare minerals critical to technology, energy and defense, Reuters reported.
Korea Zinc
The Trump administration has acquired about 10 percent of Korea Zinc as part of a $7.4 billion smelter project in Tennessee.
This investment is part of a joint venture in which the Department of Defense owns 40 percent and the Department of Commerce provides $210 million in CHIPS Act grants. The remaining $5.5 billion in funding will be provided through US-guaranteed loans and other private sources.
Construction will begin in 2026 and operations will gradually begin in 2029.
Trilogy Metals
Trilogy Metals is another centerpiece of the Trump administration's strategy. The US acquired a 10% stake in the Upper Kobuk Mineral Projects (UKMP), Alaska, and obtained the right to subsequently purchase another 7.5% of the company through a financial mechanism called warrants (a right to purchase shares at a set price in the future).
The approximately $35.6 million investment will support the development of critical mineral resources in the Ambler mining district, rich in copper, zinc and lead.
Donald Trump also signed an executive order allowing the construction of an access road to the district, facilitating the exploitation of these strategic resources.
Critical Metals
It is also in talks to acquire an approximately 8% stake in Critical Metals, a company developing the Tanbreez rare earth deposit in Greenland. This investment would give Washington direct access to the largest rare metals project in the Arctic territory, allowing the US to control an unprecedented share of the strategic resource.
Lithium Americas
The American administration also acquired 5% of Lithium Americas and 5% of the Thacker Pass joint venture, made together with General Motors, the Thacker Pass lithium mine in Nevada being considered vital for the development of a domestic supply chain for lithium, a metal used in electric vehicle batteries and other electronic devices.
MP Materials
In MP Materials, which operates the Mountain Pass rare earth mine in California, the Trump administration has acquired about 15 percent of the company. The Department of Defense will become the largest shareholder, marking the largest federal investment in the rare minerals sector to date. The project aims to increase domestic processing and production of magnets, reducing US dependence on imports.
USA Rare Earth
Talks are also advanced with USA Rare Earth, which is developing a mine in Sierra Blanca, Texas, and a neo magnet plant in Stillwater, Oklahoma.
Commercial exploitation is expected in the first half of 2026, with the investment giving the administration a direct role in the domestic production of rare metals and magnets essential for advanced technology.
Intel Corp
The Trump administration also acquired about 9.9 percent of Intel Corp, strengthening the security of the supply chain for critical materials and supporting the expansion and construction of advanced manufacturing facilities domestically.
Through these investments, the Trump administration is transforming traditional subsidies into direct ownership tools, giving the US control over strategic resources in the rare mineral sector and reducing reliance on foreign suppliers, particularly China.
