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The United States has entered a new phase of industrial policy unlike anything seen in decades. Washington is channeling billions of dollars—through legislation, executive authority, and direct procurement—into domestic supply chains deemed critical to national security. Rare earths, nuclear fuel (announced last week), lithium, drones, specialty defense materials, semiconductors, and dual-use emerging technologies are at the center of this effort.

For investors, this may be more than a passing policy experiment. It could represent what many optimists believe will be a lasting structural reallocation of capital—one that may create winners in key industries. Below is a breakdown of the primary programs, their financial commitments, and the investment implications.

How Washington Directs Capital

The backbone of America’s new industrial strategy rests on five powerful policy and funding vehicles. The CHIPS and Science Act of 2022 allocates over $52 billion to reshore semiconductor manufacturing, research, and workforce development, ensuring the U.S. can meet national security and economic needs without relying on foreign supply chains (think Taiwan). The Inflation Reduction Act (IRA) complements this effort with tax credits and subsidies designed to strengthen clean energy, critical minerals, and advanced manufacturing. The Defense Production Act (DPA), Title III gives the Department of Defense authority to provide grants, loans, and long-term purchase agreements to shore up domestic production of materials deemed vital to defense readiness. Meanwhile, the Department of Energy’s Loan Programs Office leverages federal credit to finance large-scale energy, nuclear, and critical mineral projects that private lenders might consider too risky.

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Finally, the Defense Logistics Agency’s National Defense Stockpile is being rebuilt after decades of neglect, with renewed purchases of rare earths, specialty metals, and other strategic materials to secure supply for future military and industrial needs. CHIPS and Science Act (2022): Over $52 billion allocated for domestic semiconductor manufacturing, R&D, and workforce training. The recent One Big Beautiful Bill Act also is helping to allocate $2 billion to the Department of Defense for enhancing the National Defense Stockpile.

Taken together, these tools allow Washington to shape entire supply chains—from mining through advanced manufacturing—while providing anchor demand for private industry.

Semiconductors: The Foundation of Modern Security

Semiconductors are the flagship of America’s new industrial push. The Commerce Department and NIST are already deploying nearly $39 billion in direct awards under the CHIPS for America program to fund new fabs, research centers, and equipment plants.

While chip foundries capture headlines, the ripple effects extend downstream. Makers of lithography equipment, deposition tools, wafer materials, and specialty chemicals could stand to benefit from sustained capital expenditures.

Importantly, CHIPS subsidies come with “guardrails”: firms that accept U.S. subsidies are restricted from expanding advanced capacity in certain foreign jurisdictions. For investors, this reinforces the need to focus on domestic suppliers and toolmakers positioned to capture a larger share of this reshaped global supply chain.

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Rare Earths and Critical Minerals

America’s reliance on overseas sources of rare earths, magnets, and strategic minerals has long been recognized as a vulnerability. Washington is now moving decisively.

• Pentagon grants and loans—hundreds of millions of dollars via DPA Title III—have gone to companies like MP Materials to build domestic separation and magnet production capacity.
• The Defense Logistics Agency has resumed purchases for the National Defense Stockpile, including bismuth and other specialty metals vital for defense.
• The Department of Energy has launched multibillion-dollar, multi-year initiatives supporting mineral processing, recycling, and new refining capacity.

For investors, the real opportunity may be in the midstream: processors and magnet makers with high barriers to entry, especially those with government purchase agreements that reduce project risk.

Read more: The New Geopolitical Battlefield: China’s 30-Year Play for Rare Earth Domination

Building a Strategic Uranium Reserve

Nuclear energy is back in focus—especially domestic uranium mining, enrichment, and fuel cycle capacity. The Department of Energy has created a Strategic Uranium Reserve, now actively purchasing uranium from U.S. producers. The first Trump administration tried to buy $150 million worth of uranium in 2020. In May 2024 Biden signed a law to begin moving away from our Russian dependency for uranium. Reuters recently wrote that the U.S. is far behind its peers with only 14 months of uranium inventory while Europe has two and a half years. China has 12 years of worth of inventory of uranium to supply its current needs.

DOE is also supporting advanced reactor designs and enrichment facilities through its Loan Programs Office and Civil Nuclear Credit program.

For investors, the thesis seems clear: uranium miners and fuel fabricators with U.S. operations may have the government as an anchor customer. This could create both a price floor and a financing backstop, improving project viability and long-term returns.

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Drones and Autonomy

Unmanned systems have moved from experimental projects to frontline priorities. DARPA and the armed services are investing heavily—often in the hundreds of millions—into drone swarms, autonomy, and counter-drone technologies.

Small drone manufacturers, sensor developers, and autonomy software companies are particularly attractive, as their prototypes can quickly mature into full procurement programs. Unlike many areas of defense, this is a space where small- and mid-cap firms can compete with primes, as technology adoption cascades rapidly.

Investors who monitor DARPA solicitations and Air Force or Army contract announcements may be able to identify promising companies early, before they achieve mainstream recognition.

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Specialty Metals: Restocking the National Defense Stockpile

After decades of neglect, the National Defense Stockpile is being rebuilt. The Defense Logistics Agency has begun purchasing metals like titanium, tungsten, and bismuth through multi-year, multi-million-dollar contracts.

This benefits not only mining and refining companies but also the aerospace, electronics, and munitions manufacturers who rely on secure inputs. Because the global supply base for many specialty metals is narrow, even modest DLA contracts can create material demand spikes for niche producers.

Investors should track DLA solicitations closely, as they often highlight under-the-radar companies positioned for sudden growth.

Source: Data from U.S. government announcements (DOE, DoD, DLA, Commerce), CHIPS and Science Act, and recent reporting from Reuters, AP, and CSIS (2022–2025).

Investment Implications: Following Federal Flows

For investors, Washington’s industrial policy wave may provide signals related to certain strategies:

1. Track solicitations and funding calls. NOFOs (Notices of Funding Opportunity) and RFPs (Requests for Proposals) often precede major contract awards.
2. Differentiate up- and downstream. While miners benefit, midstream processors and manufacturers may offer better risk-adjusted returns.
3. Seek offtake agreements. Government purchase guarantees, like MP Materials’ DoD partnership, may lower project risk and stabilize revenue.
4. Boosting Uranium Reserves. DOE uranium purchases and enrichment contracts could provide direct, immediate revenue streams to domestic producers.
5. Drone Innovation. Small defense and drone innovators could represent significant opportunities as contracts expand.
6. Mind the guardrails. Export controls and domestic sourcing requirements may determine which companies capture subsidies.

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Conclusion: Investing in Washington’s Protectionism

The U.S. government is no longer content to rely on global markets for critical inputs. By combining legislation, executive authority, and direct procurement, Washington is rebuilding domestic capacity across semiconductors, rare earths, nuclear, drones, specialty metals, and artificial intelligence.

For investors, the opportunities could lie in identifying the companies aligned with federal commitments. Those that secure grants, contracts, or offtake agreements may stand to benefit from stable, long-term demand. These are themes I am exploring for my growth clients’ allocations including drone companies when the opportunity presents itself. By positioning ahead of these flows, investors may capture much of the upside of America’s industrial rebuild.

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