The U.S. Defense Department urged Congress to amend the Defense Production Act to allow the Pentagon to fund projects in the U.K. and Australia that focus on critical minerals used for electric vehicles and weapons, Reuters reported May 11.

U.S. President Joe Biden invoked the Defense Production Act on March 31 in an effort to boost production of minerals critical to the energy transition and reduce reliance on China.

But the funds are only eligible for projects in the U.S. and Canada and can only be used for buying processing equipment, conducting feasibility studies and upgrading existing facilities. The measure does not allow the development of new mines, the report said.

Making projects in Australia and the U.K. eligible under the act would "allow the U.S. government to leverage the resources of its closest allies to enrich U.S. manufacturing and industrial base capabilities and increase the nation's advantage in an environment of great competition," the department said in its request to Congress.

The request is part of the Pentagon's recommendations to Congress for the upcoming U.S. military funding bill, known as the National Defense Authorization Act, which will be finalized in late 2022. The Pentagon requested a $773 billion budget for 2023.

Reuters said a Defense Department official was not immediately available for additional comment.

The Pentagon granted Las Vegas-based MP Materials Corp. an aggregate $44.6 million as of February for the development of the Mountain Pass rare earths operation in California.

In February 2021, the department also awarded $30.4 million to Western Australia-based Lynas Rare Earths Ltd. under the Defense Production Act for the construction of a light rare earth elements separation plant in Texas.

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