On Thursday, local time, a White House official said the U.S. government plans to further expand its equity investments in key mining companies .
Jarrod Agen, executive director of the National Energy Dominance Council, said at a forum in Washington: "In our view, these kinds of equity acquisitions are commonplace. We have already been approached by many different types of companies, and they have all provided compelling reasons."
In a post-meeting interview, Agen declined to reveal the government's next potential investment target .
However, he emphasized that this strategy of strengthening the supply chain through equity investment is becoming an important part of the US's efforts to promote manufacturing and key technology development . He stated that actual government investment can provide companies with stronger impetus for technological breakthroughs, resource development, and production expansion, and also help enhance the overall resilience of the US supply chain.
Gallium, cobalt, and other key minerals are widely used in products such as smartphones and industrial magnets, as well as in defense systems such as missile guidance, radar, and jet engines, and batteries. Core materials for other low-carbon emission reduction technologies.
Over the past year, the Trump administration has spent more than $1 billion acquiring stakes in key mineral and mining companies, moves that often drive up the stock prices of the companies in question.
These transactions include: the $400 million acquisition of a 15% stake in rare earth producer MP Materials Corp. announced in July; a $670 million investment in rare earth magnet startup Vulcan Elements Inc.; and the acquisition of a 10% stake in Canadian mineral exploration company Trilogy Metals Inc. for $35.6 million.
In September, the Trump administration announced that it would acquire a stake in Lithium Americas, which is developing the largest lithium deposit in the United States, as part of restructuring an existing $2.23 billion loan between the Canadian company and the Department of Energy.
The United States is increasingly concerned about its heavy reliance on foreign sources for some key materials, so the Trump administration has decided to invest taxpayer money in companies it considers vital to national security, a trend that is gradually gaining momentum.
Earlier this week, a senior State Department official responsible for economic affairs said the United States will seek agreements with eight allies to strengthen cooperation in artificial intelligence. New initiatives in the supply chain of computing chips and key minerals required for the technology.
In an interview, U.S. Under Secretary of State for Economic Affairs Jacob Helberg said the initiative will kick off with a meeting at the White House on December 12, with attendees including officials from the United States, as well as from Japan, South Korea, Singapore, the Netherlands, the United Kingdom, Israel, the United Arab Emirates, and Australia.
(Article source: CLS)
