Trump administration takes unprecedented stakes in mining companies as us pushes for critical minerals independence

The Trump administration has made 2025 a pivotal year for critical minerals policy, dramatically expanding federal involvement in an industry essential to both national security and clean energy technology. Critical minerals—including lithium, cobalt, nickel, and rare earth elements—are the backbone of electric vehicle batteries, solar panels, wind turbines, and military equipment. Currently, China controls about 80% of the critical minerals supply chain, creating significant national security concerns.

In November, the US Geological Survey expanded the official critical minerals list from 50 to 60 items, adding copper, silver, uranium, and metallurgical coal. This designation provides companies with faster permitting, tax incentives, and federal funding opportunities. However, Trump’s approach goes far beyond traditional support—the administration is taking direct equity stakes in private mining companies, spending over $1 billion in public money to buy minority ownership positions in firms like MP Minerals, ReElement Technologies, and Lithium Americas.

This strategy represents a dramatic departure from typical federal policy. “What we’re talking about here is something very different, which is an industry that has not yet launched,” explains Beia Spiller from Resources for the Future. Critics worry about the government picking winners and losers rather than supporting broad industry development. The administration has also controversially pushed for seabed mining around American territories, drawing opposition from Indigenous communities.

While the Biden administration focused on critical minerals for clean energy transition, Trump’s $7.5 billion allocation prioritizes military applications, with $2 billion going directly to national defense stockpiles. This aggressive push reflects growing geopolitical tensions and the race to secure domestic supply chains for materials that define 21st-century technology and defense capabilities.