Latest news with #DefenseProductionAct
Politico
2 days ago
- Business
- Politico
Trump's AI plan meets ‘energy dominance'
President Donald Trump's artificial intelligence plan — due out this week — is shaping up to be a lot like his 'energy dominance' platform. The AI Action Plan will include cutting back environmental requirements and streamlining permitting policies to make it easier to build data centers and power infrastructure, Mohar Chatterjee reports. Previous White House AI plans in the Biden administration and Trump's first term have focused on the technology's use and issues such as intellectual property. The new inclusion of permitting policy reflects both the tech industry's reality that the greatest barrier to AI deployment is access to reliable power — and Trump's enthusiasm for boosting fossil fuel production. 'Remaining the world's leader in AI will require an enormous increase in energy production,' Trump told attendees at a summit last week in Pittsburgh. The tech-energy intersection is evident in how some of AI's biggest players pitched the White House on the AI Action Plan during an open comment period this spring. Google, for example, wrote that U.S. energy and permitting rules 'appear inadequate' to meet the sector's needs. Meta called for a 'comprehensive national strategy to support domestic data center investment and deployment,' including 'timely access to reliable electricity and speed to market and permitting efficiency.' OpenAI recommended streamlining transmission line development and using the Defense Production Act to accelerate gas turbine construction. Anthropic, the company behind AI model Claude, even offered a specific energy target: 50 gigawatts of power — the equivalent of 25 Hoover Dams — dedicated to data centers by 2027. The White House has leaned on AI's needs to advance its fossil fuel agenda. The Pittsburgh summit last week was accompanied by more than $90 billion in data center and energy investments, coming on the heels of billions in announced investments during Trump's Middle East trip. A controversial report this month warning that fossil fuel plants are needed to prevent blackouts was couched in language promoting the AI race. Even as he revoked Biden-era AI and energy policies early in his term, Trump kept one that opened federal lands to data centers. He also recently launched an initiative to pair data centers with federal labs — the groundwork for a potential executive order this week. The order, which may be announced on the same day as the AI plan, is expected to direct the Energy Department to kick-start data center construction on federal sites, two people familiar with the plan told Mohar. Trump is scheduled to deliver an AI speech Wednesday at an event hosted by the All-In podcast and the Hill & Valley Forum. Green groups — which have long been concerned about data centers' potential to undermine grid reliability and increase greenhouse gas emissions — are on alert. 'Trump's AI scheme sounds like a climate bomb clothed in tech bro skin,' Jean Su, energy justice director at the Center for Biological Diversity, said Monday. It's Monday — thank you for tuning in to POLITICO's Power Switch. I'm your host, Jason Plautz. Power Switch is brought to you by the journalists behind E&E News and POLITICO Energy. Send your tips, comments, questions to jplautz@ Today in POLITICO Energy's podcast: Josh Siegel speaks with Jason Grumet, CEO of the American Clean Power Association, about the state of renewable energy under Trump. Power Centers Could geothermal get a boost from fossil fuels?Researchers and the geothermal industry are looking at ways fossil fuels can be used to generate the energy source, Shelby Webb writes. Geothermal energy has bipartisan support and the backing of federal incentives — and, crucially, the Trump administration. Trump in an executive order called for removing 'all illegitimate impediments' to geothermal projects. And Energy Secretary Chris Wright has spoken favorably about geothermal. Regulators in North Dakota approved a feasibility study in June to see whether geothermal could be paired with active oil well sites or if captured carbon dioxide could be used to feed geothermal production. Permitting gets its momentBoth Republican and Democratic lawmakers are hoping to reopen talks on permitting legislation, writes Kelsey Brugger. Committees in both the House and Senate will hold hearings this week focused on accelerating environmental reviews and addressing increased demand for electricity. 'I am hearing, believe it or not, some interest among Democrats in doing something on permitting reform. Because not only is it slowing down and grinding to a halt a lot of conventional energy projects, but there are also renewable projects, things that Democrats support,' Senate Majority Leader John Thune (R-S.D.) said during an interview Sunday on Fox News. While lawmakers in both parties want to streamline the permitting process, Democrats are wary of the GOP's intentions and the administration's unilateral actions. Need a satellite? NASA might have one for saleThe Trump administration is considering selling or leasing some NASA satellites, including ones already in orbit, Scott Waldman writes. It's in line with the administration's other efforts to slash federal spending. But NASA spokesperson Bethany Stevens stressed that no decisions have been made yet. The satellites are primarily used to gather scientific data, including carbon dioxide levels. NASA has about 50 spacecraft in orbit, and the Trump administration hasn't disclosed which ones may be up for grabs. In Other News Next stop, South America: China is building electric vehicle factories in Brazil, aiming to capitalize on one of the world's biggest markets after other automakers retreated. The little guy: There is surging interest globally in small modular reactors as nuclear energy gains steam because of soaring electricity demand. Subscriber Zone A showcase of some of our best subscriber content. The phase-out of federal renewable energy tax credits has created more uncertainty for states like New York and New Jersey that have ambitious clean energy plans. Trump dismissed all but one of the members of a federal board that oversees the storage of nuclear waste. The EPA officials who oversee the Greenhouse Gas Reduction Fund will move into the newly created Office of Finance and Administration. That's it for today, folks! Thanks for reading.
Axios
3 days ago
- Business
- Axios
Group offers energy and industrial playbook for countering China
The U.S. has reached an "inflection point" that demands "swift and decisive action" to reverse erosion of industrial capacity and tech leadership, warns a major new report from the nonprofit Securing America's Future Energy. Why it matters: "The rise of China as a global economic and military competitor presents one of the most existential challenges the United States has faced in its history," it finds. The U.S. is "increasingly reliant on foreign adversaries" for minerals, tech, and supply chains that power the economy and our defense. The big picture: The report blends geopolitical analysis with detailed policy ideas. It's grouped around reinforcing four "pillars of power" that underpin security — materials for defense needs are a theme here — and industrial resilience: Expanding and securing supplies of minerals and materials. Satisfying energy security needs. Promoting new tech that maximizes efficiency and diversification. Increasing manufacturing capacity. Between the lines: It's quite Trump-y in some ways while implicitly rejecting some of his policies in others. A spin through the often-detailed recommendations shows many are consistent with Trump 2.0 goals in areas like LNG and domestic oil and critical minerals production. Yes, but: Elsewhere, citing manufacturing competitiveness goals, it backs tech like EVs and solar that Trump officials disdain as they yank away federal support. "EVs will likely play a major role in the future of the automotive industry — and the United States must lead the transition for both national and economic security reasons," it states at one point. And it calls for an even more aggressive industrial policy at a time Trump officials are already moving in this direction via efforts like taking a direct stake in rare earths company MP Materials. Zoom in: Here are just a few of the 30 detailed policy recommendations that caught my eye beyond the usual stuff like permitting reform... New DOE and DOD-led cost-sharing initiatives with battery manufacturers and other downstream industries. Direct Pentagon purchasing of small modular reactors. Expanded Transportation Department grants for zero-emissions vehicles. "Congress should reprioritize existing loan guarantee programs to support advanced energy, manufacturing, and dual-use manufacturing capacity." Using the Defense Production Act and export finance agencies to enhance access to help allies develop minerals the U.S. does not possess.
The Sun
16-07-2025
- Business
- The Sun
Pentagon aims to boost US rare earth supply with local firms
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 signed a multibillion-dollar deal last week to become the largest shareholder in rare earths producer MP Materials and also agreed to several financial backstop measures for the company. The move - which the defense official said reflected a desire to 'share the risk' inherent in minerals projects - sparked questions across the mining sector about whether other companies could see similar investments from the U.S. military. 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. Chinese mining standards are considered to be lower than those in the United States. The MP deal structure reflects a 'unique approach' by the U.S. government to 'account for the difficulties in establishing and sustaining production of critical rare earth magnets in a market environment in which China controls much of the supply chain,' the official said. The Pentagon investment in MP was undertaken via a Cold War-era law known as the Defense Production Act, as well as its Office of Strategic Capital, the official said. - Reuters
Indian Express
15-07-2025
- Business
- Indian Express
Pentagon to keep working with US rare earths projects, US defense official says
The US Department of Defense plans to continue working with rare earths companies to ensure diverse American supply of the critical minerals used across the economy, a defense official told Reuters on Tuesday. The Pentagon last week signed a multibillion-dollar deal to become the largest shareholder in rare earths producer MP Materials and also agreed to several financial backstop measures for the company. The move – which the defense official said reflected a desire to 'share the risk' inherent in a critical minerals project – sparked questions across the US mining sector about whether other companies could see similar investments from the US military. The Pentagon 'is looking forward to continue working with companies across the (rare earths) supply chain to ensure that DoD and the nation have the secure and resilient supply chains necessary to secure national and economic security for generations to come,' the official said. The MP deal structure reflects a 'unique approach' by the government to 'account for the difficulties in establishing and sustaining production of critical rare earth magnets in a market environment in which China controls much of the supply chain,' the official added. Pentagon investment in MP was undertaken via a Cold War-era law known as the Defense Production Act, as well as its Office of Strategic Capital, the official said.
Miami Herald
11-07-2025
- Business
- Miami Herald
US Moves To Loosen China's Grip on Rare Earth Minerals
A U.S. company has announced a $400 million deal with the United States Department of Defense amid soaring demand for domestically mined rare earth elements that are critical for both civilian and military technologies. The MP Materials deal is being hailed as a major move toward building out the U.S. mine-to-magnet supply chain and cutting the country's reliance on geopolitical rival China. Newsweek reached out to the Pentagon and MP Materials via request for comment outside of office hours. China supplies 70 percent of the rare earths imported by the U.S. and controls about 85 percent of the world's refining capacity-a virtual stranglehold on production of the high-performance magnets used in everything from electric vehicles to missiles. This dependency is viewed in Washington as an Achilles' heel. That concern has driven the administration of President Donald Trump to seek out new deals-such as the one signed with Ukraine in May. MP Materials Corp announced Thursday it had entered a public-private partnership with the U.S. Department of Defense that would, in its words, "dramatically accelerate the build-out of an end-to-end U.S. rare earth magnet supply chain and reduce foreign dependency." Under the deal, the Pentagon will invest $400 million for a 15 percent ownership stake in the Las Vegas-headquartered firm, whose Mountain Pass mine in California remains the country's only rare earth mining facility. The company also processes rare earth concentrate, though most of the final refining and magnet production still takes place in China. "This initiative marks a decisive action by the Trump administration to accelerate American supply chain independence," said James Litinsky, Founder, Chairman, and CEO of MP Materials. MP Materials shares surged by over 50 percent when trading opened Thursday morning. China has already demonstrated its willingness to leverage its dominance, as in April when it slapped restrictions on several rare earth exports in retaliation for Trump's tariff hikes on Chinese goods. Beijing announced last month it was easing those curbs after a 90-day trade truce hammered out with the Trump administration, though U.S. officials complained shipments of the critical resource had not returned to previous levels. In March, Trump invoked emergency powers under the Defense Production Act to expand domestic production of critical minerals as part of broader efforts to reduce U.S. dependence on China. Arnab Datta, Managing Director of Policy Implementation at Employ America and Director of Infrastructure Policy at IFP, wrote on X: "This is a big deal. It's many industrial policy financing tools in one transaction: preferred equity purchases, warrants, lending, and a price floor. And a staggering amount of money [...] "A lot of risk to have tied to just one project! It could blow up and the government ends up with little to show for it and a lot of money spent, and the tools delegitimized because of the failure." Michael McNair, fund manager at a large U.S.-based asset manager, wrote on X (formerly Twitter): "As I said several months ago, this is how you compete against China to secure domestic supply chains. I expect a lot more of these kinds of deals to come." The United States is expected to keep ramping up capacity in this area. In addition to expanding refining at Mountain Pass, MP Materials says it will build a second domestic magnet manufacturing plant. The "10X Facility" will be funded in part by a committed $1 billion from JPMorgan Chase and Goldman Sachs Bank USA. Related Articles South America Explores Building Own 2,800-Mile Transcontinental RailroadUS Allies in Europe Project Aircraft Carrier Power Near China'Restrainers' Urge Trump to Scale Back US Troops on China's DoorstepChinese Jet Intercepts US Ally Over Contested Waters 2025 NEWSWEEK DIGITAL LLC.
