The US Government intends to acquire further equity stakes in critical minerals companies as part of its strategy to address China’s dominance of the sector, said senior White House official Jarrod Agen.
Agen, who is the Executive Director of the National Energy Dominance Council, made these remarks at the American Growth Summit in Washington, reported Bloomberg.
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This summit was sponsored by companies including Citigroup and Nvidia.
Agen stated: “I think they are the norm from our perspective,” referring to the government’s approach to investing in these companies.
He added: “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 plans to counter China’s dominance of the critical minerals sector.
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By GlobalDataCritical minerals such as gallium and cobalt are essential in the production of products ranging from semiconductors, medical equipment, industrial magnets, and defence systems such as missile guidance, radar and jet engines.
These minerals are also required for batteries and other technologies aimed at reducing carbon emissions.
The strategy of investing in companies considered essential for national security comes amid heightened concern over US dependence on China for critical materials.
This reliance became a focal point in the ongoing trade war, especially after Beijing restricted exports of rare earth element in response to US export controls. This led to disruptions in the supply chain until China eased the restriction after the US lifted its countermeasures.
China is said to account for almost 70% of global rare earths mining and control 90% of rare earths processing.
The Trump administration, over the past year, has invested more than $1bn to acquire stakes in critical minerals companies.
Recent such deals include a $400m investment for a 15% stake in MP Materials and $670m for a stake in magnet producer Vulcan Elements.
Another transaction saw $35.6m exchanged for a 10% stake in Canadian minerals explorer Trilogy Metals.
In September, the administration announced it would acquire a stake in Lithium Americas – the company developing the nation’s largest lithium deposit – as part of a deal to restructure an existing $2.23bn loan from the Department of Energy.
Last month, the US Government was reportedly in talks to acquire a stake in Critical Metals Corporation.
Earlier this month, the US expanded its critical minerals list to include copper and metallurgical coal.
Japanese Prime Minister Sanae Takaichi recently announced that Japan and the US are set to jointly explore rare earth mining near Minamitori Island in the Pacific.
The US is also reportedly seeking agreements with eight allied countries to enhance the critical minerals supply chain and secure key resources for AI technology.
This will be discussed by delegates from Australia, Israel, Japan, the Netherlands, Singapore, South Korea, the UAE and the UK during a scheduled meeting on 12 December.
The selection of these nations was based on their roles in semiconductor manufacturing and their reserves of critical minerals.
In a brief interview with Bloomberg, Agen did not disclose the specific companies targeted for future investments.
Agen explained the rationale behind the investments, stating: “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.”
