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Pentagon Eyes U.S. Gallium Supply

The Pentagon plans to award contracts to North American companies by year-end to recover gallium, a critical mineral used in advanced military radar systems, after China imposed export restrictions amid ongoing trade tensions between the world’s two largest economies.

Defense officials will use the Defense Production Act to fund projects that extract gallium from existing waste streams, Pentagon spokesman Jeff Jurgensen said. “Recovery, not mining, is the fastest way to make the materials more available in the US,” the statement noted, adding that Defense Production Act funds “have not been awarded for minerals recycling projects” previously.

You can read more on the matter here.

What’s going on?

• US Job Cut Announcements More Than Double, Reaching Recession-Era Levels (theDeepDive)

• DeSantis mocks '3.3 million' Canadians who visited Florida: 'Not much of a boycott' (NP)

• Ontario Defiant on Energy Tax Despite Trump’s Tariff Delay (theDeepDive)

• Ontario won’t walk back retaliatory measures despite one-month tariff exemption for many Canadian goods (CTV)

• SpaceX Starship rocket explodes minutes after launch (FT)

• Trump’s Tariffs Drive Canadian Sentiment Toward US to Historic Low (theDeepDive)

• Canada to grant legal status for thousands of undocumented construction workers (TS)

• Walgreens Goes From $100 Billion Health Giant to Private-Equity Salvage Project (WSJ)

• Trulieve Cannabis Sees Another CFO Resign (theDeepDive)

• Philippines set to sign troops pact with Canada as defence ties deepen (Globe)

What’s the latest?

• Layoffs: The Trump administration’s mass layoffs of federal workers—over 62,000 in February alone—could overwhelm the Unemployment Compensation for Federal Employees (UCFE) system, which is slower and more manual than private-sector unemployment programs. The number of federal workers collecting unemployment benefits rose 12% year-over-year as of Feb. 15, and experts warn claims could increase ten- to twentyfold. The labor market may not provide quick reemployment, adding financial strain on affected workers. Meanwhile, legal challenges have blocked some layoffs, including a federal judge halting terminations of 200,000 probationary employees.

• Jobs: The U.S. added 151,000 jobs in February, below economists' expectations of 160,000, while the unemployment rate rose to 4.1% as jobless Americans increased by 203,000. Federal job cuts totaled 10,000, with broader layoffs expected to impact future reports. Wage growth slowed slightly to 0.3% from January’s 0.4%, reinforcing the Federal Reserve’s cautious stance on interest rate cuts. The Fed has paused rate reductions amid stalled inflation progress, with officials signaling they need more data before making further moves.

• Housing: Montreal-area home sales increased 7.4% in February year-over-year, with 4,088 properties sold. The median price of single-family homes rose 8.9% to $600,000, condos increased 6.3% to $420,000, and plexes climbed 6% to $790,000. Active listings dropped 3.6% to 16,976, while new listings rose 4.5% to 6,868. The market remains seller-friendly, with increased bidding on homes priced between $400,000 and $600,000, while demand for higher-end properties has softened amid economic uncertainty.

• Energy: U.S. Energy Secretary Chris Wright plans to seek up to $20 billion to refill the Strategic Petroleum Reserve (SPR) to near maximum capacity. The reserve, currently at 395 million barrels, was significantly depleted after the Biden administration sold about 290 million barrels, partly due to emergency measures and congressional mandates. The SPR has a maximum capacity of 700 million barrels, but infrastructure issues from rapid drawdowns may require some funds for maintenance. Congressional approval is needed for funding, and U.S. crude futures briefly rose to $67.68 per barrel following the news.

• Broadcom: Broadcom shares rose 3% after reporting strong Q1 earnings, with adjusted EPS of $1.60 on $14.92 billion in revenue, surpassing analyst expectations. AI-related revenue grew 77% year-over-year to $4.1 billion, with projections reaching $4.4 billion next quarter. The company remains deeply engaged with multiple hyperscalers for custom AI chips, supporting long-term growth. Despite a 19% stock pullback in 2025 due to tariff concerns, analysts view Broadcom’s results as a positive indicator for the AI market.

Copper: the silent winner in america's trade war

The stock market and stuff

• Spirit Blockchain Partners With Astralane To Launch Staked SOL Index/ETP With Up To 11% APY (theDeepDive)

• Donald Trump’s crypto project netted $350mn from presidential memecoin (FT)

• Teck Mining Pivots to Asian Markets as Trump Tariffs Hit Canadian Exports (theDeepDive)

• India's Tata Power unit exploring $5.6 billion clean energy investment in Andhra state (Reuters)

• G Mining Begins Earthworks At Oko West Project (theDeepDive)

In the juniors

• Rare Uranium Mill Strategy and NASDAQ Uplisting Plans | Corey Dias – Anfield Energy (theDeepDive)

• COPPER: New Name, New Strategy Uncovers Billion-Dollar Opportunity | Craig Hallworth – Gunnison Copper (theDeepDive)

• The Strategic Timing Behind This Ready-to-Launch Uranium Project | Pine van Wyk – Forsys Metals (theDeepDive)

FULL DISCLOSURE: Power Nickel is a client of Canacom Group, the parent company of The Deep Dive. Canacom Group is currently long the equity of Power Nickel. The author has been compensated to cover Power Nickel on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. We may buy or sell securities in the company at any time. Always do additional research and consult a professional before purchasing a security.