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Investing.com -- The Trump administration is considering a plan to redirect at least $2 billion from the CHIPS Act toward critical minerals projects, according to Reuters, citing sources familiar with the matter.
The proposed reallocation would use funds already designated by Congress for semiconductor research and chip factory construction. This approach would avoid making a new spending request while working to reduce U.S. reliance on China for critical minerals essential to the electronics and defense industries.
The plan would also expand Commerce Secretary Howard Lutnick’s influence over the strategic minerals sector. This change aims to create a more centralized approach to critical minerals policy within the administration.
White House officials have been seeking to consolidate the government’s minerals strategy, particularly after questions emerged following the Pentagon’s investment in rare earths company MP Materials last month, one source indicated.
The White House has not responded to requests for comment on the potential funding shift. Pentagon officials were not immediately available to comment, and MP Materials declined to comment on the matter.
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