.png)
The U.S. Department of Energy has announced a sweeping US$1 billion funding plan to accelerate domestic mining, processing, and manufacturing of critical minerals. The move comes just days after China intensified restrictions on exports of rare earths and other strategic materials to the U.S. market.
By Ryan Chigoche
In earlier coverage, we reported how Beijing’s latest measures—adding seven heavy rare earths to its export control list, tightening licensing rules, and restricting shipments of gallium, germanium, graphite, and antimony—have rattled global supply chains.
These curbs have slowed deliveries to industries ranging from electric vehicle makers to defence contractors, prompting warnings from manufacturers over potential production halts.
Faced with this threat, U.S. Energy Secretary Chris Wright emphasised the initiative’s strategic importance.
“For too long, the United States has relied on foreign actors to supply and process critical materials essential to modern life and national security.”
Under the plan, US$500 million will scale up domestic critical mineral processing, battery manufacturing, and recycling through the Office of Manufacturing and Energy Supply Chains (MESC).
An additional US$135 million is earmarked to support the refining and recovery of rare earths from mine tailings, while US$250 million will fund projects that extract valuable mineral byproducts from coal and other industrial processes.
The initiative also includes US$50 million to advance the refining and alloying of strategic elements such as gallium, germanium, and silicon carbide, which are essential for semiconductors and high-performance magnets.
This comprehensive funding strategy is a direct response to China’s export curbs and is squarely focused on strengthening domestic industrial and defence supply chains while reducing reliance on foreign sources of critical materials.
China, which refines roughly 90% of the world’s rare earths, has consolidated the sector, merged private producers, enforced stricter environmental and national security regulations, and cracked down on smuggling.
In July 2025, U.S. imports of antimony and germanium fell by over 80% compared with earlier in the year, and licensing delays for rare earths now stretch into months, with some suppliers receiving no permits at all.
Automakers and electronics firms in the U.S. and Europe have warned of potential production disruptions, highlighting the strategic leverage China now wields. Industry observers say Washington’s funding plan signals a determined effort to counter this leverage and reshape global supply chains.
While the U.S. strategy is focused on building domestic capacity, the global scramble for critical minerals underscores the urgent need for countries like Zimbabwe to develop their own critical minerals strategy.
With significant deposits of lithium, graphite, and rare earths, Zimbabwe could position itself as a reliable alternative supplier to international markets.
By investing in value-added processing and refining, the country could attract partnerships and investment, supplying minerals to global industries while complementing, rather than competing with, the U.S. domestic strategy.
