The government may redirect money from the CHIPS and Science Act.
The CHIPS and Science Act, signed into law in 2022 by then-President Joe Biden, was originally designed to boost the U.S. semiconductor industry. The package allocated $280 billion for research, development, and manufacturing support.
Now, according to insiders cited by Reuters, part of those funds could be redirected to support projects in critical minerals. At least $2 billion may be made available, potentially benefiting not only mining companies but also refiners and recycling firms. No official confirmation has been issued so far.
The report follows recent announcements from the U.S. Department of Energy, which pledged nearly $1 billion for critical raw materials projects. At the same time, the Pentagon has taken a more direct role, becoming a shareholder in MP Materials, the country’s leading rare earths producer. Alongside an offtake agreement, the Defense Department has guaranteed minimum prices for the company’s neodymium-praseodymium (NdPr) output. In addition, the U.S. is ramping up raw material stockpile plans.
Such state-backed price guarantees and long-term supply contracts are seen as key incentives for rebuilding critical mineral supply chains in Western countries.
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