DOE Funding Critical Mineral Workforce

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Written by Daniel Graeber for IIR News Intelligence (Sugar Land, Texas)

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Summary

The U.S. federal government is stepping up to help build a workforce to support a nascent critical minerals sector. The effort follows a surprise downturn in hiring in July.

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Reshoring Comes with Restoring Workforce

In announcing a new funding opportunity for critical minerals, the U.S. Department of Energy (DOE) said it's working to "restore" energy dominance and build up the sector's workforce.

With the U.S. critical minerals sector still in something of a nascent phase, Industrial Info Resources data find American Battery Materials Incorporated is behind the grassroot La Sal Lisbon Valley Lithium-Magnesium Brine Mine in Utah, which has an investment value of $400 million.

On Friday, the U.S. Energy Department announced it was backing the fledgling industry with taxpayer funds that would support jobs and shore up domestic supplies.

"A strong domestic mining and minerals workforce is essential to powering America's future, strengthening our national security, and ending our dependence on foreign adversaries for the materials that underpin modern energy, manufacturing, and defense," said Energy Secretary Chris Wright.

U.S. President Donald Trump is bent on reshoring parts of the economy by propping up industries from fossil fuels to critical minerals. On the jobs front, however, the sector is stalled at best.

Stubborn inflation and the economic damage from a war in the Middle East that began in February is taking a toll. Last week, the U.S. Labor Department reported a sharp downturn in hiring, with 23,000 removed from payrolls last month. Federal data show jobs in the mining sector are down about 2% annually to July.

Elsewhere, a recent report from the International Energy Agency (IEA) warned the industry is consolidated among a few select producers.

"Our latest analysis shows that vast amounts of economic value depend on relatively small volumes of critical minerals, whose supply chains remain highly concentrated and are therefore vulnerable," IEA Executive Director Fatih Birol said in a statement last month. "Yet there are encouraging signs of progress--including in rare earth supply chains--where we see targeted policies and investment support starting to make a difference."

Protectionist policies in mineral rich countries such as China and the Democratic Republic of Congo are creating supply-side restrictions, something Trump is working to overcome. The latest tranche of federal funding, however, amounted to only $100 million.

The Energy Department funding, however, is geared largely toward re-educating the workforce through the Providing Opportunities for Specialized Education in Critical Technologies program, or PROSPECT.

Slow But Steady Build-Up in U.S.

But progress is progress. Australia-based Ioneer believes its Rhyolite Ridge site in Nevada holds millions of tons of lithium and boric-acid deposits. The lithium-boron prospect at the Rhyolite Ridge site is the only one in North America and one of two globally.

Industrial Info Resources finds the facility could produce as much as 18,000 tons of lithium-carbonate equivalent and 60,400 tons of boric acid over its 95-year life.

Boron is critical for the manufacturing of everything from fiberglass to semiconductors. Lithium, often derived from a mineral called spodumene, is near-ubiquitous in the modern digital age of artificial intelligence and smart phones.

The U.S. government, as part of a broad-based effort to reshore parts of the economy, is working to build up a domestic sector for lithium and lithium-ion batteries with incentives.

Elsewhere, demand growth is driving market prices higher, with lithium doubling from 2024 levels and cobalt prices climbing by 130%, according to the IEA. Prices for base metals such as aluminum, copper and tin rose by an average of about 33% over that period, with copper prices reaching record highs.

But because of the trace amounts of minerals used in many applications, those price escalations specifically should not trickle down to the consumer level.

By the Numbers

• $100 million to support critical mineral jobs
• 23,000 left U.S. payrolls last month for a surprise downturn

Key Takeaways

• Job creation can support U.S. energy security goals, the Energy Department said.
• Trade policies are creating supply-side issues that President Trump is trying to overcome.

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About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 trillion (USD).