According to Reuters, the repurposed funds could support domestic mining, processing, and recycling projects. The goal: reduce U.S. dependence on China for minerals like gallium, germanium, and rare earths, which are essential to both clean energy and defense systems.
What’s at Stake?
- The $52.7 billion CHIPS Act, passed in 2022, was designed to bolster domestic chip manufacturing and innovation. But now, its funding could serve a dual purpose: supporting upstream resources, the very minerals needed to make those chips.
- The U.S. government is seeking a more centralized approach to critical mineral strategy.
- Commerce Secretary Howard Lutnick is being positioned to lead this new unified approach, aligning federal resources under one strategy.
The possible realignment not only elevates Lutnick’s influence, but also signals a strategic pivot to fast-track domestic resource independence, including projects based at the Hawthorne Army Depot in Nevada, where M2i Global is building the nation’s first Strategic Mineral Reserve (SMR).
“Repurposing some funds for mining-related projects would align in part with the spirit of the CHIPS Act,” said a Reuters source, “as the semiconductor industry requires abundant supplies of germanium, gallium, and other critical minerals over which China has tightened its market control.”
“Mining companies themselves could benefit, but also processing and recycling firms. Most of the minerals considered critical by the U.S. government are not processed inside the country.”
Why It Matters to M2i Global
At M2i Global, this proposed reallocation confirms what we’ve long believed: the future of American innovation and security is built on a solid foundation of ethical mineral supply chains. From the launch of our Strategic Mineral Reserve to our AI-driven resource forecasting tools, we are proud to be at the forefront of reshaping how critical minerals are sourced, stored, and used in service of national priorities.
The proposed $2 billion funding shift aligns with M2i’s mission to create a secure, ethical, and efficient ecosystem for critical minerals. It also reflects the urgent momentum behind government support for upstream solutions, especially as new international conflicts and trade dynamics put even greater strain on resource availability.
Additional Context
The discussion comes just a week after the U.S. Department of Energy proposed $1 billion in new critical minerals investments, funded by the Bipartisan Infrastructure Law. Meanwhile, efforts to centralize strategy at the White House are meant to avoid the kind of confusion seen in the recent MP Materials deal, which raised questions about price floors and monopolies in the rare earths market.
While final decisions are pending, one thing is clear: the conversation around strategic minerals is no longer niche policy, it’s front-page national news.
Read the full Reuters article here:
Trump weighs using $2 billion in CHIPS Act funding for critical minerals