US To Set $5 Billion Critical Minerals Fund

The U.S. is preparing a $5 billion fund through the International Development Finance Corporation in partnership with Orion Resource Partners to secure critical mineral supplies, according to Bloomberg. Both parties will commit at least $600 million, alongside other investors, in what could become the DFC’s largest mining-related deal. Since its creation at the end of Trump’s first term, the DFC has funneled capital through loans, equity stakes, and grants to curb reliance on Chinese supply chains. The DFC has financed projects, including a $150 million loan to Syrah Resources, which supplies Tesla with graphite, and $550 million for the Lobito Corridor rail line in central Africa. Orion is also in talks to acquire a major copper-cobalt miner in the Democratic Republic of Congo. The initiative addresses short-term risks from China’s dominance in processing critical minerals and long-term shortages driven by declining ore quality, underinvestment, and slow permitting. The Defense Department has begun stockpiling cobalt and pledged $400 million to MP Materials.