The Trump administration may redirect $2 billion from the CHIPS Act to critical minerals. The Trump administration is considering a plan to redirect at least $2 billion from the CHIPS Act towards critical minerals projects, according to Reuters, citing sources familiar with the matter.

The proposed reallocation would use funds that Congress has already allocated for semiconductor research and building chip factories. This approach aims to avoid submitting a new spending request while working to reduce U.S. dependence on China for critical minerals necessary for the electronics and defense industries.

The plan will also expand the influence of Commerce Secretary Gina Raimondo 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 sought to unify the government’s strategy on minerals, especially after questions arose following the Pentagon’s investment in the rare metals company MP Materials last month, one source noted.

The White House did not respond to requests for comments on the potential funding shift. Pentagon officials were not immediately available for comment, and MP Materials declined to comment on the matter.#AKEBinanceTGE