Pentagon redirects part of Ukraine aid to critical minerals supply

The United States has redirected nearly $30 million that was previously earmarked for aid to Ukraine toward the development of supplies of critical minerals — specifically gallium and scandium.

According to Caliber.Az, the U.S. Department of Defence announced the move in a statement on its official website.

“Today, the U.S. Department of Defence awarded a $29.9 million grant to ElementUS Minerals, LLC (ElementUSA) under the Defence Production Act (DPA),” the statement said.

The statement emphasised that the funds for this investment come from the supplemental funding law for Ukraine passed in 2022.

“Gallium and scandium are essential minerals required for a wide range of defence manufacturing and equipment,” said Mike Kadenazzi, Assistant to the Secretary of Defence for Industrial Base Policy.

“This grant will enable ElementUSA to extract gallium and scandium from processing waste, supporting the Department of Defence’s efforts to expand supplies of critical minerals needed for numerous defence components and platforms,” added Jeffrey Frankston, Acting Deputy Assistant Secretary of Defence for Industrial Base Resilience.

The document notes that, under the agreement, ElementUSA will conduct design and engineering work at its facility in Texas.

Frankston reiterated that the grant will help the company recover gallium and scandium from processing waste, further bolstering Pentagon efforts to secure critical mineral supplies.

The 2022 law providing additional aid to Ukraine was signed by former U.S. President Joe Biden in May of that year. It allocated $40.1 billion in supplemental appropriations to Kyiv for the 2022 fiscal year.

By Tamilla Hasanova