The US government is doubling down on its strategy to secure domestic access to critical minerals through direct equity investments, a move officials say is essential to reducing reliance on China’s extensive control of global raw materials supply chains.
Speaking at the American Growth Summit in Washington, Executive Director of the National Energy Dominance Council Jarrod Agen said the government’s approach to acquiring stakes in mining and processing companies is a key part of the administration’s broader national security and economic agenda.
The Summit was sponsored by firms including Citigroup and Nvidia, according to Bloomberg.
“I think they are the norm from our perspective,” Agen said, referring to direct government investments.
“There is a broad scope of different companies who are coming to us.
“They are making the right case.”
Through direct equity investments, the Trump administration aims to support critical minerals projects and build domestic capacity, especially as the US seeks to counter China’s dominance in the global minerals market.
“We are literally buying equity, getting equity in companies to give the backing of the US, because that is the only way we are going to catch up with China on these things,” Agen added.
“They know the government is backing us. No one wants to mess with President Trump, and so we can actually get the materials.”
Critical minerals such as gallium, cobalt, and lithium are essential for producing semiconductors, magnets, medical devices, and defence technologies including radar systems and jet engines.
They are also vital for clean energy technologies such as batteries and solar panels.
Over the past year, the Trump administration has invested more than US$1 billion in equity stakes to bolster domestic supply chains.
Among the reported deals are a US$400 million investment for a 15 per cent stake in MP Materials, operator of the Mountain Pass rare earth mine in California, and $670 million for a share in magnet producer Vulcan Elements.
Another transaction saw US$35.6 million exchanged for a 10 per cent stake in Canadian explorer Trilogy Metals.
In September, the government acquired a position in Lithium Americas, which is developing the Thacker Pass project in Nevada — the largest known lithium deposit in the US — as part of a restructuring of a US$2.23 billion Department of Energy loan.
Last month, officials were reportedly in talks to purchase a stake in Critical Metals Corporation, a newly listed US firm focused on rare earth extraction.
Earlier this month, the administration added copper and metallurgical coal to the official U.S. critical minerals list.
China currently dominates the sector, accounting for nearly 70 per cent of global rare earth mining and about 90 per cent of processing capacity International Energy Agency, 2023.
The imbalance became a flashpoint during the ongoing trade war after Beijing restricted exports of rare earth elements, exposing supply vulnerabilities across US industries.
In a coordinated international move, Japan and the US recently announced plans to begin joint rare earth exploration near Japan’s Minamitori Island.
Prime Minister Sanae Takaichi said the initiative aims to diversify supply routes and strengthen economic security in the Indo-Pacific.
The US is also expected to meet on 12 December with delegates from eight allied countries — including Australia, Israel, Japan, the Netherlands, Singapore, South Korea, the UAE, and the UK — to discuss bolstering mineral supply chains for next-generation technologies such as AI chips and electric vehicles.
