Seeking to counter China’s dominance and secure clean energy minerals, the US readies its biggest mineral venture.
The United States government is in advanced talks to establish a $5 billion investment vehicle aimed at securing critical minerals, marking Washington’s largest-ever venture into strategic mineral dealmaking.
The proposed fund would be structured as a joint venture between the US International Development Finance Corporation (DFC) and New York-based investment firm Orion Resource Partners, with each contributing up to $2.5 billion. Funding would scale over time, positioning the initiative as the DFC’s biggest commitment in its history, according to government data.
The partnership mirrors Orion’s $1.2 billion venture with Abu Dhabi sovereign wealth fund ADQ earlier this year. With around $8 billion in assets under management across mining finance, private equity, and commodity trading, Orion brings substantial expertise to the effort.
At its core, the fund seeks to reduce US dependence on foreign mineral processing, particularly in China, while ensuring long-term supplies of copper, cobalt, rare earth elements and other materials vital for clean energy and defence. Washington aims to build more resilient supply chains as a counterweight to Beijing’s decades-long campaign of securing mineral assets worldwide through state-backed enterprises.
Industry analysts warn that traditional market forces have failed to generate sufficient investment in new mining projects, citing declining ore grades and long permitting timelines in Western markets. Meanwhile, demand for critical materials is accelerating, with copper consumption alone expected to nearly double by 2035.
Officials say the initiative underscores a recognition that mineral security is now a strategic imperative, both for the energy transition and for safeguarding US national security interests.
