US injects $3 billion into critical minerals sector
Washington allocates $3 billion to decouple battery supply chains from China, targeting silicon anodes and lithium extraction.
The US government has committed $3 billion to domestic critical minerals projects, aiming to reduce reliance on Chinese supply chains for battery inputs. The initiative includes a conditional $1.4 billion loan from the Pentagon’s Office of Strategic Capital to Sila Nanotechnologies, a California-based firm developing silicon-carbon composite anodes.
Additional financing has been directed to MP Materials and U.S. Rare Earths through equity and debt packages. These moves follow the administration’s return to the White House and represent a coordinated effort to secure upstream materials and processing capacity within US borders.
Sila begins commercial-scale anode production
Sila Nanotechnologies commenced commercial-scale production of its Titan Silicon material in late 2025. The company’s facility in Moses Lake is designed to manufacture enough silicon-carbon anode material to supply between 20,000 and 50,000 electric vehicles annually. Titan Silicon offers up to 40% higher energy density than standard graphite anodes while reducing overall battery weight and volume.
The production timeline aligns with federal efforts to localize battery component manufacturing. By replacing graphite with silicon-carbon composites, the technology addresses specific performance metrics that are critical for next-generation electric vehicle platforms.
Lilac Solutions accelerates lithium extraction
Utah-based Lilac Solutions has received funding to scale its direct lithium extraction technology from brine sources. The patented method reduces extraction time from two years to one day and increases lithium yield by approximately 50%. The process also requires 99% less land than traditional evaporation pond methods, addressing environmental and spatial constraints in mining operations.
China maintains dominant processing share
Despite new US investments, China retains control over the majority of global critical minerals processing. Data cited by OilPrice indicates that China accounts for roughly 60% of global mining and over 90% of refining for materials such as rare earths, graphite, and gallium. The Global Critical Minerals Outlook 2025 notes that China leads in the processing of 19 out of 20 strategic minerals, holding an average market share of 70%.
The International Energy Agency reports that China produces 80% of global battery cells, over 90% of active anode materials, and 85% of active cathode materials. US electric vehicle sales fell 27% year-on-year in the first quarter of 2026, following the repeal of the $7,500 federal tax credit and the easing of fuel economy standards, highlighting the need for supply chain resilience.
