The US government will expand equity investment in key mining companies to strengthen the strategic supply chain layout

The Zhitong Finance App learned that US White House officials said on Thursday that the government plans to further acquire shares in key mining companies. This practice, which was not common in the past, is becoming a new tool to promote supply chain security and the development of the technology industry. Because of the importance of these minerals in semiconductors, medical devices, industrial manufacturing, and clean energy technology, the US believes it is necessary to ensure a long-term, stable, and controlled source of supply.

Jarrod Agen, executive director of the US National Energy Leadership Council, said at a forum in Washington that more and more mining and materials companies are actively seeking cooperation with the government to push the US to establish a more stable industrial foundation in the global competition for critical resources. He pointed out that this type of investment will become more common in the future, and companies can also gain greater confidence from government endorsements.

Over the past year, the US government has invested more than 1 billion US dollars in a number of key minerals and mining companies, involving rare metals, battery materials, and high-performance magnets. These deals include a 15% stake in MP Materials (MP.US) for $400 million, a $670 million stake in magnet manufacturer Vulcan Materials (VMC.US), and a $35.6 million acquisition of a 10% stake in Canadian mining company Trilogy Metals (TMQ.US). Additionally, the government announced a stake in Lithium Americas (LAC.US) in September to help restructure a major loan between it and the Department of Energy.

In an interview after the meeting, Agen declined to disclose the next potential investment target, but emphasized that this strategy to strengthen the supply chain through equity investment is becoming an important part of the US driving manufacturing industry and key technology development. He said that through actual government investment, it can provide enterprises with stronger impetus for technological breakthroughs, resource development and production expansion, and also help enhance the overall resilience of the US supply chain.

In the context of growing demand for critical minerals, cooperation between the US government and companies is accelerating. Industries including missile guidance systems, radar, jet engines, electric vehicles, and energy storage require large amounts of high-performance metals and materials. The policy-driven equity investment model is becoming an important tool for the US to build a more complete mineral supply system and support the development of emerging industries.

At this economic forum held in Washington with the participation of a number of large technology and financial companies, US officials emphasized that they will continue to explore more ways to cooperate with the industry in the future to build a more stable foundation for the supply of key materials through both capital and policy support.