The United States is in advanced talks with New York-based investment firm Orion Resource Partners to create a multibillion-dollar fund aimed at securing critical minerals supplies.
The fund would back overseas mining projects deemed crucial for industries ranging from clean energy to defence.
According to reports from Bloomberg and the Financial Times, the proposed collaboration between the US International Development Finance Corporation (DFC) and Orion stems from growing concerns over China’s dominance in mineral processing and acquisitions of mining assets abroad.
Both Orion and the DFC are expected to commit at least $600 million each, with further participation anticipated from US government agencies and sovereign investors.
The initiative reflects the Trump administration’s push to shore up supplies of minerals such as copper, cobalt and rare earths.
Center for Strategic and International Studies Critical Minerals Security Programme director Gracelin Baskaran told the FT: “These talks really show that the [Donald] Trump administration is trying to align its financial tools with its broader mineral ambitions.”
She added that the public-private partnership could catalyse significant capital.
Talks between Orion and the DFC began last year but faced delays after queries from Commerce Secretary Howard Lutnick. Sources say those issues have largely been resolved, clearing the way for the plan to advance.
Under the prospective agreement, the US would allocate US$600 million, including US$100 million for equity stakes in mining projects and US$500 million for debt financing.
The DFC, which funds projects outside the US by mandate, acknowledged its role in critical minerals strategy, telling the FT that it “actively pursues investments that are aligned with administration priorities, including diversifying critical mineral supply chains”.
If finalised, the Orion partnership would represent the DFC’s largest mining-linked investment to date.
The agency has already backed ventures such as a US$105 million investment in start-up TechMet and $50 million for a rare earths project in South Africa.
The deal would also mark a significant step as the DFC, under incoming chief executive Ben Black — pending Senate confirmation — looks to expand collaboration with the private sector on resource security.
Orion, led by chief executive Oskar Lewnowski, is a specialist investor in mining and commodities with US$8 billion under management.
The firm provides equity and debt funding to mining projects through its private capital arm while also operating a commodities-focused hedge fund.
