A U.S. tax and spending bill could challenge American critical minerals companies by eliminating a tax credit aimed at boosting domestic production of materials like nickel and rare earths. The House of Representatives passed a version of President Trump’s bill that removes the 45X tax credit, which was introduced in former President Biden’s Inflation Reduction Act. This credit supports critical minerals extraction and processing, as well as renewable energy projects. The Senate is currently debating the bill. Mining companies argue they need this credit to compete with China, which dominates the global market for these materials. Without it, U.S. projects could face closures. While the House version includes funding for a critical minerals stockpile and a Pentagon mining loan program, these funds often fall short of the costs required for large-scale mining operations.
— new from Reuters
