The US Energy Department is proposing putting in nearly $1 billion to accelerate the development of US critical minerals and materials.
The move comes as part of the Trump administration's intention to offer funding to advance and scale up mining, processing, and manufacturing technologies in the critical minerals and materials supply chains. This would be to build up the US's semiconductor building capability.
This could be relevant to insurers and their investment portfolios as they look to diversify and find new sources of yield at a time of lowering interest rates that could make diversifying more attractive.
However, experts have said that whilst mining the rare and critical minerals could be easier than expected, the questions of where they would be processed and the supply chain could be a different story.
One of the key questions for insurers looking to invest in the critical minerals space would focus on whether any brand risk and violation of ESG principles they might adhere to could be overcome, or worth it?
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