The Department of Defense has signed multiple agreements valued at $2.03 billion in a bid to secure battery cells and critical minerals as it works to stabilize its supply chain, according to a White House fact sheet posted Friday.
The agency signed conditional loan commitments through its Office of Strategic Capital with battery cell manufacturer Sila Technologies, rare earth magnet maker Niron Magnetics and Australia-based Sunrise Energy Metals, worth $1.95 billion combined.
DOD’s Economic Defense Unit also inked an equity investment agreement valued at $85.5 million through its Industrial Base Analysis and Sustainment program with private investment holding company Strategic Bauxite USA. The entity will use DOD’s funds along with $64.5 million of private investments to acquire a mine site in Guyana, South America, from First Bauxite, with plans to expand and develop calcination facilities for primary processing, according to the press release.
Bauxite is used to manufacture heat-resistant materials for defense equipment components such as thermal barriers and turbine engines in missiles. The mineral can also be used in steel and aluminum production, energy infrastructure and industrial furnaces.
Additionally, the expansion will add to another project to build a brown-fused alumina facility in the United States.
The DOD’s Strategic Bauxite investment follows the agency’s $25 million spending toward ReElement Technologies’ expansion of its rare-earth minerals refining capacity at its Marion, Indiana, facility.
The investments come as the Pentagon urges defense companies to boost weapons production to replenish depleted munitions stockpiles. Deputy Defense Secretary Steve Feinberg sent a memo Aug. 5 to government contractors to submit production acceleration plans including delivery schedules in 21 days, the Washington Post reported Saturday.
President Donald Trump previously denied the shortage in an Aug. 6 Truth Social post, saying that defense manufacturers are building new factories to help address supply needs. Trump also said he will prosecute people leaking related information.
3 more companies signed loan commitments with DOD’s Office of Strategic Capital
Federal investments, programs in workforce development
In addition to expanding critical minerals capacity, the DOD is also spending $81.3 million toward multiple mines and metallurgy schools, according to an Aug. 7 press release.
The investments will go toward projects focused on technology and recycling innovation hubs, as well as workforce development programs. The funds also aim to create partnerships between students and the defense industry, as well as certify students with degrees in mining, geology and metallurgy.
The latest investments add to other workforce announcements the Trump administration has made recently. The Department of Energy’s Office of Critical Minerals and Energy Innovation opened applications Aug. 7 for a $100 million initiative in a bid to improve the critical minerals workforce and rebuild domestic supply chains supporting energy, manufacturing and defense technologies.
Dubbed the Providing Opportunities for Specialized Education in Critical Technologies, or PROSPECT, the initiative aims to expand educational opportunities and train new workers supporting the domestic production, processing, recovery and recycling of critical minerals.
In July, the Labor Department expanded a workforce development partnership with shipbuilder Huntington Ingalls Industries to grow pre-apprenticeships by establishing a maritime-focused Job Corps Center. The site will focus on shipbuilding occupations at nearby shipyards.
