The U.S. Department of Defense plans to continue investing in critical minerals projects to ensure a diverse American supply of the building blocks for weapons and many electronics, a defense official told Reuters on Tuesday…The Pentagon has invested almost $540 million into critical minerals projects and "will continue such efforts in accordance with congressional appropriations and statutory authorities," the official said…"Rebuilding the critical minerals and rare earth magnet sectors of the U.S. industrial base won't happen overnight, but (the Pentagon) is taking immediate action to streamline processes and identify opportunities to strengthen critical minerals production," the official added…The U.S. government and military recognize that the country no longer can produce or process many critical minerals, but plans to "take the necessary time and precautions to produce critical minerals and associated products in a safe and responsible fashion," the official said, adding that approach was unlike China's.

In a hearing Tuesday on Capitol Hill, experts warned a bipartisan group of lawmakers on the House Foreign Affairs Committee that China’s chokehold over critical minerals has become the "life or death matter" of this century…China's export restrictions on minerals critical for technology, defense, auto manufacturing and the emerging artificial intelligence industry have prompted immense concern in not only the U.S., but among international leaders, as dependence on Beijing amid its trade war with Washington has become abundantly clear…Lawmakers pressed the experts on how the U.S. can best counter the increasingly dire situation that has not only become an increasing economic concern but a top national security issue…"We have allies that we can rely on," he said, pointing to both Canada and Australia, which have "tremendous caches" of rare earth materials. "And then you have South Korea and Japan able to do refining."…"We have the building blocks right there … to get in the game very quickly," he added…"We can’t continue operating this way," he said, highlighting that the U.S. needs to look at China’s threat to its supply chains holistically and in both the near and long term. "It's all of the above, and it's all hands on deck."…Ultimately, the experts warned that the U.S. needs to make major changes now in how it views mining at home, trade deals abroad, and addressing the ever-present "bottom line" by countering cheaper rates and persuading shareholders not to invest in Chinese companies…"It's become the American way, which is not beneficial for us right now. Basically, everything's a return on investment," Manchin warned. "If we don't get in a game pretty quick, and we don't look past the bottom line right now — if we had done that during World War II, we never would have won it — and we're in that same situation right now. …"It's a life or death matter for the 21st century."

Nvidia's planned resumption of sales of its H20 AI chips to China is part of U.S. negotiations on rare earths, Commerce Secretary Howard Lutnick said on Tuesday, and comes days after its CEO met President Donald Trump…"We put that in the trade deal with the magnets," Lutnick told Reuters, referring to an agreement Trump made to restart rare earth shipments to U.S. manufacturers. He did not provide additional detail…The planned resumption is a reversal of an export restriction imposed in April that is designed to keep the most advanced AI chips out of Chinese hands over national security concerns, an issue that has found rare bipartisan support. It drew swift questions and criticism from U.S. legislators on Tuesday…The decision "would not only hand our foreign adversaries our most advanced technologies, but is also dangerously inconsistent with this Administration's previously-stated position on export controls for China," Democratic Representative Raja Krishnamoorthi, ranking member of the House of Representatives Select Committee on China, said in a statement…Asked at a regular foreign ministry briefing in Beijing about Nvidia's plans to resume AI chip sales, a spokesperson said: "China is opposed to the politicisation, instrumentalisation and weaponisation of science, technology and economic and trade issues to maliciously blockade and suppress China."…China halted exports of rare earths in March following a trade spat with Trump that has shown some signs of easing. It dominates the market for rare earths, a group of 17 metals used in cellphones, weapons, electric vehicles, and more.

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China is seeking to further consolidate its global lead over the U.S. in certain industrial areas by making sure crucial technologies won’t easily fall into the hands of foreign rivals. Its latest target: electric-vehicle batteries…China on Tuesday added technologies for producing materials used in EV batteries onto its list of export restrictions. Those include technology linked to battery-cathode materials production as well as nonferrous metal-processing technology, associated with raw materials in batteries.