$70 billion in funding "boosts" key minerals: Trump administration reboots US Export-Import Bank strategic game plan

A bipartisan U.S. Senate delegation led by Kevin Cramer and Mark Warner announced that they will introduce legislation this week to reauthorize the Export-Import Bank of the United States (Ex-Im Bank) and provide an additional $70 billion in financing support over the next decade. The bill is seen as a key financial pillar supporting the Trump administration’s “critical mineral self-sufficiency” strategy.

According to the proposal, the overall lending cap for Ex-Im Bank will be increased from $135 billion to $205 billion to facilitate larger-scale export and project financing for strategic industries such as energy, mineral extraction, and manufacturing. Kevin Cramer stated that Trump “fully supports” expanding the bank’s capacity and believes its role in the current geopolitical and supply chain battles is irreplaceable.

In recent years, the U.S. has accelerated efforts to reduce dependence on China for rare earth elements and critical raw materials. Previously, China imposed export controls on various rare earths used in aerospace, electric vehicles, and battery industries, putting greater pressure on the U.S. in raw material security. Ex-Im Bank is positioned as a core tool to promote the “restructuring of critical mineral supply chains” by offering favorable financing to overseas buyers and domestic projects, enhancing the competitiveness of American products in international markets.

If not reauthorized, the bank’s funding authority will expire at the end of this year. Legislation must still be approved by the U.S. House of Representatives and Senate and signed into law by Trump to take effect.

Kevin Cramer pointed out that Ex-Im Bank can not only help American companies win more international orders but also serve as an “economic diplomacy” incentive to foster more trade and industrial cooperation. He also mentioned that fields such as military equipment, pharmaceuticals, food, energy, and critical minerals could become key areas of support.

Although the institution has faced bipartisan criticism for “using taxpayer funds to support private companies” and some Democrats have questioned its impact on climate and human rights, the White House and several lawmakers believe that, amid intensifying global resource competition, the U.S. must have equivalent financial tools.

Earlier this week, Ex-Im Bank announced a $10 billion debt financing to build a domestic reserve system for “critical raw materials,” serving the automotive and battery manufacturing industries. This move is seen as an important step in countering China’s dominance in mineral and battery supply chains. (CNBC)