Why Trump's mineral push could aid EVs
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A flurry of federal investments in mining and mineral supply chains could help the electric vehicle industry that famously isn't President Trump's jam.
Why it matters: The White House emphasized the support as a way to diversify supply chains critical to defense, aerospace and other sectors.
- But some of the companies provide materials critical for batteries and other clean energy equipment that China now dominates.
The big picture: The push to build up domestic production of critical minerals and raw materials tackles "one of the major challenges" facing U.S. automakers as they compete globally on EVs, said Andrew Miller, CEO of Benchmark Mineral Intelligence.
Driving the news: More than $2 billion of planned backing unveiled Friday includes...
- A $1.4 billion Pentagon investment in Sila Nanotechnologies, which domestically makes battery components.
- $150 million via the Pentagon for Niron Magnetics, a firm commercializing magnets with EV and energy uses — including wind — that don't rely on rare earth elements.
- The U.S. Export-Import Bank is investing $25 million in Westwater Resources to develop an Alabama deposit of graphite, a key battery material.
Yes, but: The White House has reversed Biden-era federal EV support.
- The 2025 GOP budget law ended major consumer purchase subsidies.
- The Environmental Protection Agency is scuttling vehicle CO2 standards that benefit EVs.
State of play: Shifting global supply chains is a very long-term undertaking.
- But analysts called the new investments a piece of the mineral security puzzle.
- These are just the latest in a suite of Trump administration investments aimed at bolstering mining and mineral supply chains in the U.S. and among allies.
What we're watching: The Atlantic Council's Alexis Harmon expects most deals to come with purchase rights or "contractual priority" for the Pentagon.
- But she still sees significant "spillover" effects for clean energy supply chains.
- And, she said via email, the $180 million in new federal investments in mineral-related workforce and education will help clean energy industries.
The bottom line: "This type of investment could strengthen parts of the EV-battery supply chain and generate wider clean-energy benefits," said Tom Moerenhout, who heads the critical minerals initiative at Columbia's Center on Global Energy Policy.
- "But what we really need is a demand-side policy that incentivizes the largest chunk of minerals and battery components demand, i.e. EVs," he said via email, adding that ignoring that side of the equation is "nonsensical."
