Climate tech firms pivot to critical minerals amid weak US support
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Climate tech companies in the US are shifting their focus to critical minerals as federal support for decarbonization wanes under the second Trump administration. The pivot allows firms to tap into demand for materials like lithium and rare earths used in defense and electronics. Even as climate funding shrinks, the critical minerals sector offers a new growth avenue.
The Pivot
Climate tech companies are increasingly rebranding their technologies as critical mineral solutions to attract investment and government contracts. For example, firms that developed lithium extraction methods for batteries now market them for defense applications. The shift reflects a broader trend: over 30 US climate startups have added critical minerals to their business plans since 2025, according to MIT Technology Review.
Market Drivers
Demand for critical minerals like lithium, cobalt, and rare earths is projected to grow 400% by 2030, driven by electronics and military needs. The US Department of Defense has allocated $1.2 billion for domestic mineral processing in 2026. This contrasts with a 40% cut in federal climate research funding under the current administration.
What's Next
The US Congress is expected to vote on the Critical Mineral Security Act in June, which could unlock $3 billion in loans for domestic projects. It remains unclear whether climate tech firms can maintain their original decarbonization missions while pivoting to mineral extraction.
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Climate tech firms pivot to critical minerals amid weak US support
