The Trump administration is considering reallocating at least $2 billion from the CHIPS Act to fund critical minerals projects, Reuters reported Friday, citing sources familiar with the matter.
The potential shift would redirect money from semiconductor research and chip factory construction to reduce US reliance on China for minerals like germanium and gallium, the report said. It would also expand Commerce Secretary Howard Lutnick's role in overseeing funding decisions.
MP Materials (MP), which last month received a Pentagon investment for rare earth mining, is among companies seen as potential beneficiaries, Reuters reported.
The Commerce Department oversees $52.7 billion CHIPS Act, which has funded chipmaking research and production since 2022.
The White House and MP Materials did not immediately respond to MT Newswires' request for comment.
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