Business · Trade · 14 hrs ago
US critical minerals push faces scrutiny over deals with mining companies
The Trump administration is backing US critical minerals projects to reduce reliance on China for supplies considered important to energy and national security.
The government has committed billions through agencies and financing tools, including taking ownership stakes in companies.
Democratic lawmakers are scrutinising some deals for possible conflicts involving the Trump family and Commerce Secretary Howard Lutnick.
One example is a $1.6 billion agreement with USA Rare Earth, under which the government took a 10 per cent stake; other supported companies also have reported ties to Trump family investors.
Industry experts warn against treating all the deals as corrupt, saying that could discourage investment in the sector.
They expect government support to continue, with further project announcements possible in the coming months, though congressional scrutiny is likely.
The Trump administration has committed billions of dollars to companies across the critical minerals supply chain as it seeks to reduce US reliance on China.
Democratic lawmakers have raised potential conflict-of-interest concerns about some companies receiving government support.
USA Rare Earth secured a $1.6 billion Commerce Department deal in January in exchange for a 10 per cent government stake.
Vulcan Elements received a conditional $620 million Defence Department loan commitment and $50 million from Commerce in November.
Industry voices say scrutiny should not undermine efforts to secure minerals considered essential to energy and national security.
- Who
- The Trump administration and mining companies, including USA Rare Earth, Vulcan Elements and Kaz Resources.
- What
- The US is financing critical minerals companies, while Democratic lawmakers scrutinise potential conflicts of interest linked to some deals.
- When
- The article was published on November 8, 2026; it also refers to deals in January and November without specifying the years.
- Where
- The United States; Kaz Resources’ projects are in Kazakhstan.
- Why
- The administration aims to reduce US reliance on China for critical minerals and secure supplies considered important to energy and national security.
Democratic lawmakers raising conflict-of-interest concerns
Industry advocates warning against broad condemnation
Potential conflicts
Democratic lawmakers raising conflict-of-interest concerns
Democratic lawmakers have put some companies on notice over possible conflicts involving the Trump family and Commerce Secretary Howard Lutnick.
Industry advocates warning against broad condemnation
Tom Moerenhout said it was wrong to treat all Trump administration critical minerals deals as one pot of corruption.
Effect of scrutiny
Democratic lawmakers raising conflict-of-interest concerns
Lawmakers are scrutinising companies that received government support.
Industry advocates warning against broad condemnation
Industry advocates warn that broad criticism could deter investment in the sector for several years.
Cove Kaz said it had worked closely with US officials to secure a tungsten asset and an independent supply chain for the West.
USA Rare Earth secured a $1.6 billion deal with the Commerce Department in exchange for a 10 per cent government equity stake.
Vulcan Elements received a conditional $620 million loan commitment from the Defence Department and an additional $50 million from the Commerce Department.
- USA Rare Earth deal
- $1.6 billion; 10 per cent government equity stake
- USA Rare Earth private offering
- $1.5 billion
- Vulcan Elements Defence Department commitment
- $620 million, conditional
- Vulcan Elements Commerce Department support
- $50 million
- Kaz Resources financing package
- $1.6 billion for projects in Kazakhstan
What people are saying
There'll be investigations, that's for sure
Don't treat your entire critical minerals deals from the Trump administration as one big pot of corruption. Because number one, it's not true, and number two, if that happens, we are putting risk on the sector that could last several years in terms of losing appetite for investment
Since 2023, we have worked closely with US officials to secure a generational asset that will secure an independent tungsten supply chain for the West. We are grateful for the support we continue to receive and welcome any questions from US officials