Ernest Scheyder

(Reuters) – The U.S. Department of Defense asked Congress for funding to fund facilities in Australia and the United Kingdom that produce strategic minerals, which are used to create electric vehicles and other weapons. They called the request crucially important to national defense.

In part of recommendations made by the Pentagon to Congress on how to draft the U.S. Military Funding Bill, also known as the National Defense Authorization Act, the Pentagon asked to amend the Cold War-era Defense Production Act.

The proposed amendments may be rejected or accepted by Congress if the bill is approved later in the year.

Washington has been working harder to decrease America’s dependency on China to obtain lithium and rare earths, as well as other mineral used in a variety of technology. DPA funds cannot be used in the digging of new mines under existing law. But they are allowed to be used to improve facilities, conduct feasibility studies or purchase equipment. DPA funding can only be granted to US and Canadian facilities.

In a request to Congress the Pentagon stated that adding Australia and Britain would “allow U.S. government leverage the resources its closest allies to enrich U.S. manufacture and industrial base capabilities and enhance the nation’s advantage within an environment of great competitors.”

The Pentagon stated that relying on only domestic and Canadian sources “unnecessarily restricts” DPA’s ability “ensure an industrial base robust.”

Unofficial from the Pentagon could not be reached immediately for further comment.

The National Mining Association (a trade organization for the U.S. miners) declined to comment.

RARE EARTHS

The United Kingdom has facilities to refine nickel, and several processing plants for rare earths and lithium are being proposed. Australia offers processing and mining services for many minerals. This includes iron ore and lithium.

A $30.4 Million DPA Grant was awarded by the Pentagon to Lynas Rare Earths Ltd, an Australian company. This grant will be used to construct a Texas facility with Blue Line Corp.

Lynas’ Chief Executive Amanda Lacaze complained last month that the funds had not been disbursed. She cited ongoing negotiations regarding protection of her company’s intellectual property.

MP Materials Corp was also awarded at least $45 millions by the Pentagon. It controls America’s rare earths mine and is dependent upon China for processing.

They will help MP in its efforts to restart U.S. mining of these strategic minerals. Las Vegas-based MP stated last week it had begun to receive those funds. The Pentagon will also have certain rights to technical information because of this financial support.