Pentagon Inks Over $2B in Agreements to Secure Battery Cells and Critical Minerals

The U.S. Department of Defense (DOD) has finalized a series of agreements valued at a combined $2.03 billion, aimed at securing battery cells and critical minerals as part of its broader effort to stabilize supply chains, according to a White House fact sheet released Friday.

Through its Office of Strategic Capital, the agency signed conditional loan commitments with battery cell manufacturer Sila Technologies, rare earth magnet maker Niron Magnetics, and Australia-based Sunrise Energy Metals, totaling $1.95 billion combined.

In a separate move, the DOD’s Economic Defense Unit, through its Industrial Base Analysis and Sustainment program, executed an equity investment agreement worth $85.5 million with private investment holding company Strategic Bauxite USA. The company will use the DOD funds, along with $64.5 million in 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 a key input for manufacturing heat-resistant materials used in defense equipment components, including thermal barriers and turbine engines in missiles. The mineral also finds applications in steel and aluminum production, energy infrastructure, and industrial furnaces.

Furthermore, the expansion is expected to complement an existing project to construct a brown-fused alumina facility in the United States.

The DOD’s investment in Strategic Bauxite follows a $25 million allocation to ReElement Technologies for expanding rare-earth minerals refining capacity at its Marion, Indiana, facility.

These investments come as the Pentagon urges defense companies to accelerate weapons production to replenish depleted munitions stockpiles. Deputy Defense Secretary Steve Feinberg sent a memo on Aug. 5 to government contractors, requesting production acceleration plans with delivery schedules within 21 days, as reported by the Washington Post on Saturday.

President Donald Trump previously disputed the shortage in an Aug. 6 Truth Social post, asserting that defense manufacturers are building new factories to address supply needs. Trump also stated he would prosecute individuals leaking related information.

Federal investments, programs in workforce development

Beyond expanding critical minerals capacity, the DOD is also directing $81.3 million toward multiple mines and metallurgy schools, according to an Aug. 7 press release.

The funds will support projects focused on technology and recycling innovation hubs, as well as workforce development programs. The investments also aim to foster partnerships between students and the defense industry, and to certify students with degrees in mining, geology, and metallurgy.

The latest investments add to other workforce announcements from the Trump administration. The Department of Energy’s Office of Critical Minerals and Energy Innovation opened applications Aug. 7 for a $100 million initiative aimed at improving the critical minerals workforce and rebuilding domestic supply chains supporting energy, manufacturing, and defense technologies.

Dubbed the Providing Opportunities for Specialized Education in Critical Technologies (PROSPECT), the initiative seeks to expand educational opportunities and train new workers supporting 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.