DOD to push domestic sourcing of critical minerals

By Tony Bertuca / June 8, 2021 at 5:00 AM

The White House is directing the Defense Department to use more incentives to support U.S. companies accessing critical minerals in the hopes of limiting exposure to Chinese sources.

The directive is part of the Biden administration's national supply chain review, which recently hit a 100-day milestone.

The Pentagon, according to a White House fact sheet, will "deploy" Defense Production Act Title III incentives, including "grants, loans, loan guarantees, and offtake agreements -- to support sustainably produced strategic and critical materials, including scaling proven research and development (R&D) concepts and emerging technologies from other programs such as the Small Business Innovation Research awardees."

Along with critical minerals, the White House has identified semiconductors, large-capacity batteries and pharmaceuticals as key supply chain vulnerabilities.

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