We HAVE have to focus on the rare earth part or you are basically just giving China the whole thing as they control more then 90% of refinement (and almost all of mining)
This is such a horrible approach to succeeding and will not do anything good for anyone.
Those factories will be mostly automated and so the idea that they will come with lots of jobs is misguided. On top of that to the extent this is a good idea the private market have no problem finding the money for that themselves.
The real issue is in the actual materials i.e. rare earth etc which is where the government completely dropped the ball the last 20 years.
8.5B going to the mining industry would make sense not to Intel.