JP Morgan Chase targets critical minerals as part of $1.5 trillion investment initiative

JP Morgan Chase has announced a $1.5 trillion, 10-year investment initiative targeting critical minerals and other strategic industries, signaling Wall Street's growing recognition that supply chain vulnerabilities pose systemic risks to US economic stability.

The Security and Resiliency Initiative, announced in an Oct. 13 press release, will make direct equity and venture capital investments of up to $10 billion to help selected companies, based primarily in the US, "enhance their growth, spur innovation, and accelerate strategic manufacturing."

According to JP Morgan Chase the initiative will target four key areas: supply chain and advanced manufacturing, including critical minerals, pharmaceutical precursors and robotics; defense and aerospace technologies; energy independence and resilience; and frontier technologies like artificial intelligence and quantum computing.

"It has become painfully clear that the United States has allowed itself to become too reliant on unreliable sources of critical minerals, products and manufacturing -- all of which are essential for our national security," said chairman and CEO of JP Morgan Chase, Jamie Dimon.

"This new initiative includes efforts like ensuring reliable access to life-saving medicines and critical minerals, defending our nation, building energy systems to meet AI-driven demand and advancing technologies like semiconductors and data centers. Our support of clients in these industries remains unwavering," he added.

JP Morgan Chase's commitment could provide crucial financing for mining and processing projects that typically require hundreds of millions or billions of dollars in upfront investment before generating revenue. Traditional project finance has been limited for critical minerals due to commodity price volatility, regulatory uncertainty and environmental concerns that have made lenders cautious about long-term commitments.

The announcement comes as US critical minerals imports continue rising, accounting for more than 50% of the supply for 31 of 50 critical minerals in 2024, according to the US Geological Survey. China dominates processing for many of these materials, creating potential chokepoints that have prompted calls for domestic alternatives and diversified supply chains.

Platts, part of S&P Global Energy, assessed daily DDP US battery-grade lithium carbonate at $11,500/mt Oct. 10, unchanged day over day and higher week over week. This reflects standard battery-grade quality, minimum 99.5% Li2CO3, delivered 15 to 60 days forward.