2025 marks the decisive year for companies to prepare for CSRD compliance. By next year, thousands of businesses across Europe, large multinationals and SMEs alike, will need to publish detailed sustainability disclosures aligned with ESRS standards. The countdown has officially begun, and with only one reporting cycle left to strategise, getting started now is a must.

The Financial Times reported that the Pentagon plans to spend up to $1 billion on critical minerals. This move aims to cut U.S. reliance on China for essential metals in defense, clean energy, and advanced tech. Led by the Defense Logistics Agency (DLA), this program is the largest U.S. strategic mineral acquisition since the Cold War.

Significantly, the Pentagon’s plan is part of Trump’s broader “One Big Beautiful Bill Act” (OBBA) to enhance domestic and allied resources. Under OBBA, the DLA will use a $7.5 billion allocation to:

• Expand the U.S. stockpile by 2027 ($2 billion)

• Invest in mineral and processing supply chains ($5 billion)

• Launch a Pentagon credit program to support private mining and refining projects ($500 million)

Washington’s Strategic Push: From Market Reliance to State Control

China’s control over global mineral supply chains has raised national security concerns. The country refines 80–90% of rare earths and dominates other key metals, such as cobalt and nickel.

Recent Chinese export limits on rare earths have raised concerns in the U.S. Washington views these limits as an effort to weaponize mineral exports. The Pentagon’s stockpiling shows a move from market-driven sourcing to state-led resource security.

Trump Targets China with 100% Tariffs

As per the latest news, President Trump has confirmed plans to impose 100% tariffs on all Chinese imports starting on November 1. He labeled China’s export limits a “hostile act.” He noted the timeline might change, saying, “Right now it is. Let’s see what happens.”

On Truth Social, Trump accused Beijing of manipulating supply chains and warned of “100% tariffs… over and above any tariff they are currently paying.”

This tariff announcement follows China’s decision to limit rare earth exports. These actions link industrial policy more closely to national security.

Pentagon Boosts Stockpile with High-Value Minerals

According to the Financial Times, the Pentagon’s buying spree targets four key minerals vital for defense and clean energy:

• Cobalt – Up to $500 million. Used in batteries, superalloys, and medical implants.

• Antimony – About $245 million, partly sourced from U.S. Antimony Corp. Key for flame retardants, batteries, and defense components.

• Tantalum – Around $100 million. Essential for missile systems and aerospace parts.

• Scandium – A combined $45 million, reportedly from Rio Tinto and APL Engineered Materials. Used in aerospace alloys and electronics.

These purchases will expand the U.S. national stockpile, which already holds $1.3 billion in metals. The new acquisitions focus on materials critical for weapons production, energy systems, and high-tech manufacturing.

A defense official told the FT that several Pentagon offices are now “flush with cash” for mineral procurement. The government is also exploring offshore mineral resources in the Pacific Ocean, rich in nickel, cobalt, copper, and manganese.

Alaska’s Ambler Road Project Approval

President Trump approved the long-contested Ambler Road Project in Alaska. This 211-mile corridor will connect the Dalton Highway to vast mineral deposits in the northwest.

This decision reverses a Biden-era block and is seen as a vital step toward U.S. resource independence. It opens access to copper, zinc, and rare earth elements essential for clean energy and defense manufacturing.

• ALSO READ: Lithium Americas (LAC) Stock Jumps 95% as Trump Seeks Government Equity in Nation’s Largest Lithium Mine 

Mineral Stockpiling: Shielding the Nation from Supply Shocks

The U.S. imports over 80% of its critical minerals and relies heavily on foreign refining, according to the U.S. Geological Survey (USGS). This dependence exposes the country to significant supply risks, especially amid rising geopolitical tensions.

The International Energy Agency (IEA) estimates that China controls 90% of rare earth refining and significant percentages of nickel and cobalt refining. Such dominance highlights the risk of relying on a single country for critical inputs.

Thus, to tackle these challenges, the U.S. is building a stockpile of critical minerals. This will reduce supply risks, maintain production of weapons and advanced technologies, and support domestic mining investment.

In short, this stockpile acts as strategic insurance, safeguarding industrial capabilities and boosting national security.

The U.S. aligns with a global trend in mineral stockpiling. The EU requires reserves under its Critical Raw Materials Act. India launched a National Mineral Security Strategy in 2025, while Japan maintains a months-long reserve of rare earths.

Minerals with Net Import Reliance on China

Market Impact and Industry Response

The Pentagon’s stockpiling effort has caught attention in mining and rare earth stocks. Companies like U.S. Antimony and MP Materials are gaining interest as Washington increases mineral procurement.

For example, the DLA’s plan for 3,000 tonnes of antimony—about one-eighth of U.S. annual demand—may stabilize the market for this volatile metal. Analysts expect similar effects for other targeted minerals as demand becomes clearer.

In conclusion, the Pentagon’s $1 billion mineral stockpile plan marks a clear shift. The U.S. government is no longer waiting for markets to secure resources. Instead, it is actively building reserves, funding domestic projects, and aligning economic policy with defense needs.

As competition for minerals increases, the Pentagon’s stockpiling is a defensive strategy and a clear signal. It shows that the next big race among global powers will be for critical minerals. These are vital for future technologies, not oil.

• LATEST: China’s Grip on Lithium Tightens as Global Supply Struggles to Keep Up

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The United States’ push to lead in green hydrogen, once a centerpiece of its clean energy strategy, is slowing down. Recent policy changes by the Trump administration cut funding for hydrogen hubs. They also reduced tax credits for large-scale projects. Analysts say this slowdown could open the door for China to dominate the emerging market for low-carbon hydrogen technology.

The cuts mark a major shift from the previous administration’s investment-heavy approach. Under the Biden-era Inflation Reduction Act (IRA), the U.S. planned to spend billions to make hydrogen from renewable electricity. The goal was to decarbonize industries such as steel, cement, and chemicals, which are hard to electrify.

Now, with federal incentives being reduced or delayed, several projects are being reassessed. Developers worry that without consistent support, production costs will remain too high to compete globally.

Funding Cuts Stall the Hydrogen Hub Dream

In mid-2025, the U.S. Department of Energy began reviewing funding for several regional hydrogen hubs. These hubs were meant to create networks linking producers, users, and transport systems. Seven hubs were approved in 2023, backed by more than $7 billion in federal funding, but four are now facing cuts or slowdowns.

Industry groups warn that this could affect projects worth tens of billions of dollars. “Policy certainty is crucial for investors,” said one energy analyst cited in the Bloomberg report. “Every delay or rollback increases the cost of capital and slows deployment.”

The U.S. also faces uncertainty about the Section 45V hydrogen tax credit. This credit offers up to $3 per kilogram for hydrogen produced with near-zero emissions. The credit helped close the gap between costly green hydrogen and cheaper fossil-based hydrogen. Without it, the cost of producing green hydrogen in the U.S. could rise from $3 to $5 per kilogram to over $7, according to BloombergNEF estimates.

China Powers Ahead in the Hydrogen Race

While U.S. funding stalls, China is moving fast. The country already leads the world in electrolyzer manufacturing — the core technology used to make hydrogen from water. In 2024, Chinese companies supplied more than 65% of global electrolyzer capacity, up from just 40% in 2022.

China’s domestic market is also growing. The government has set a goal to produce 200,000 tonnes of green hydrogen per year by 2025 and up to 5 million tonnes by 2030. To support this, provinces such as Inner Mongolia and Hebei have started big solar-powered hydrogen plants.

China’s advantage lies in scale and cost. Electrolyser units made in China cost $600–$1,200 per kilowatt, far lower than the $2,000–$2,600 range typical in the U.S. and Europe. If current trends continue, the price difference might make Chinese-made equipment the top choice for global projects.

• SEE MORE: China’s Envision Energy Launches World’s Largest Green Hydrogen and Ammonia Plant

Rising Costs and Shrinking Margins

Hydrogen production costs remain the biggest obstacle to global growth. The International Energy Agency (IEA) estimates that low-carbon hydrogen made with renewables costs two to four times more than conventional hydrogen from natural gas.

Producing one kilogram of green hydrogen costs between $4 and $12. This varies based on electricity prices and how efficient the electrolyzer is. Grey hydrogen, made from natural gas, costs $1–3 per kilogram. Analysts say costs must fall below $2 per kilogram to compete in most industries.

Scaling up manufacturing and securing cheap renewable power are key. The IEA projects that with large-scale deployment, electrolyzer costs could fall by 60% by 2030. But this requires steady investment and policy support — something the U.S. may now struggle to sustain.

According to BloombergNEF, global investment in hydrogen production and infrastructure reached $24 billion in 2024, up 50% from 2023. China accounted for nearly half of that total, while U.S. spending slowed after federal policy reviews.

Companies Pivot Amid Uncertainty

Despite the funding cuts, some U.S. companies are pressing ahead. Plug Power, a leading hydrogen firm, recently secured a $1.7 billion loan guarantee to expand production. The company plans to build several U.S. facilities that will supply green hydrogen to logistics and industrial customers.

Meanwhile, developers are adjusting strategies to reduce costs. Some plan to co-locate hydrogen plants near wind or solar farms to secure cheap power. Others are exploring blending hydrogen with natural gas in pipelines to reduce emissions without full conversion.

Industry leaders also call for cooperation with allies. The European Union, for example, continues to fund green hydrogen projects through its Hydrogen Bank initiative. They argue that closer cooperation across the Atlantic could help Western producers compete with China’s growing supply chain.

• READ MORE: EU Greenlights Nearly €1 Billion for Green Hydrogen Projects

The Global Hydrogen Race

The race for leadership in green hydrogen is as much about geopolitics as it is about technology. Countries view hydrogen as a way to cut oil imports, boost industry, and ensure energy independence.

In 2024, global hydrogen demand reached about 97 million tonnes, according to the IEA. Only a small share — less than 1% — came from low-carbon production. To meet the world’s climate targets, that share must grow to at least 20% by 2030.

BloombergNEF expects the global hydrogen market to surpass $500 billion each year by 2050. This includes production, storage, and transport. But success depends on which countries can bring down costs first and scale up faster.

If the U.S. loses momentum now, analysts warn, it may have to rely on imported technology later — particularly from China. The following table compares the costs, market share, and 2030 planned output between the two nations. 

Can America Catch Up?

Green hydrogen is central to decarbonizing heavy industry and transport. It also supports renewable integration by storing excess power from wind and solar. Without continued investment, the U.S. risks missing key climate targets.

According to the Department of Energy’s earlier projections, hydrogen could cut up to 10% of U.S. greenhouse gas emissions by 2050 if widely adopted. That potential could shrink if projects slow or shift overseas.

At the same time, China’s expansion means more global supply, which could help reduce costs worldwide. Some analysts see this as an opportunity for global cooperation — if the U.S. can focus on innovation, efficiency, and regulation rather than pure scale.

The chart from Bloomberg below shows the potential changes under Trump’s current policy moves. 

Experts say the U.S. can still recover its position with the right mix of policy and private investment. Restoring tax credits, simplifying permits, and investing in electrolyzer manufacturing can help create a fairer market.

For now, China appears to have the upper hand. Its rapid manufacturing growth and strong state support have created momentum that the U.S. may struggle to match. However, as clean energy technologies mature, global demand will likely outstrip any single country’s supply.

The coming years will decide whether the U.S. remains a key player or becomes a buyer in the green hydrogen market it once hoped to lead.

• FURTHER READING: Element Resources to Build America’s Largest $1.85B Green Hydrogen Plant in California

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