Highlights

• US negotiating $5B fund to expand access to critical minerals like copper, cobalt, and rare earths.
• Joint venture between US government's DFC and Orion Resource Partners aims to reduce reliance on China.
• Initiative signals long-term strategic commitment to securing mineral supplies for technology, defense, and renewable energy.

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The United States is negotiating a $5 billion fund to expand access to critical minerals such as copper, cobalt, and rare earths. The initiative would be a joint venture between the U.S. International Development Finance Corporation (opens in a new tab) (DFC), a government agency that provides development-oriented financing abroad, and New York-based investment firm Orion Resource Partners (opens in a new tab). If finalized, it would be the largest direct government-backed investment in strategic minerals in U.S. history.

Rock-Solid Facts — Foundations of the Plan

• DFC and Orion are expected to contribute equal amounts to reach a combined $5 billion, though key terms remain under negotiation and no deal is guaranteed.
• The fund’s goal is to secure supply chains amid growing concerns over reliance on China and potential long-term shortages caused by declining ore grades, limited investment, and slow permitting processes.
• DFC has prior experience in strategic minerals, including a $150 million loan to Syrah Resources Ltd., (opens in a new tab) a supplier of battery-grade graphite to Tesla Inc., and over $550 million invested in upgrading Angola’s Lobito Corridor railway for copper transport.
• Orion Resource Partners manages roughly $8 billion in assets and is pursuing cobalt and copper projects in the Democratic Republic of Congo, including a bid with Virtus Minerals for Chemaf Resources Ltd (opens in a new tab).

Smoke and Mirrors — What Remains Uncertain

• While the fund is under discussion, there is no assurance that it will reach the $5 billion target or that projects will be executed as envisioned.
• Plans under a potential second Trump administration — including doubling or tripling DFC’s investment capacity and taking on higher-risk projects — are aspirational and not codified in law.
• Competition with China for strategic minerals is a stated goal, but actual supply outcomes depend on permitting, approvals, and project execution, which remain uncertain.

Tilted Prism — How the Vision is Framed

The initiative is presented as a bold, game-changing move, emphasizing U.S. ambition and strategic intent. The framing may overstate near-term impact: $5 billion is substantial, but mining and refining are multi-year ventures. Optimism highlights competition with China while underplaying logistical, regulatory, and environmental challenges.

Signal to the Supply Chain — Why This Matters

Even without immediate outputs, the fund signals U.S. commitment to securing critical minerals for technology, defense, and renewable energy. By combining government finance with private investment, the initiative positions the U.S. to strengthen supply-chain control and reduce dependence on foreign sources. Investors and policymakers should view it as a strategic lever, shaping long-term mineral access rather than an instant supply solution.

Source: Financial Express — “U.S. eyes $5B mining fund to boost critical mineral supplies,” by Jaelyn Campbell, Sept. 17, 2025.

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