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The Department of Defense has signed multiple agreements valued at $2.03 billion in a bid to secure battery cells and critical minerals as it works to stabilize its supply chain, according to a White House fact sheet posted Friday.
The agency signed conditional loan commitments through its Office of Strategic Capital with battery cell manufacturer Sila Technologies, rare earth magnet maker Niron Magnetics and Australia-based Sunrise Energy Metals, worth $1.95 billion combined.
DOD’s Economic Defense Unit also inked an equity investment agreement valued at $85.5 million through its Industrial Base Analysis and Sustainment program with private investment holding company Strategic Bauxite USA. The entity will use DOD’s funds along with $64.5 million of private investments to acquire a mine site in Guyana, South America, from First Bauxite, with plans to expand and develop calcination facilities for primary processing, according to the press release.
Bauxite is used to manufacture heat-resistant materials for defense equipment components such as thermal barriers and turbine engines in missiles. The mineral can also be used in steel and aluminum production, energy infrastructure and industrial furnaces.
