U.S. Deepens Strategic Role in Global Mineral Supply Chains
The U.S. government is negotiating the launch of a $5 billion investment vehicle with Orion Resource Partners to boost domestic and allied access to critical minerals. The initiative, led by the U.S. International Development Finance Corporation (DFC), would represent the most ambitious public-private effort yet to secure supplies of metals vital to clean energy, semiconductors, and defense technologies.
Sources familiar with the matter confirmed the joint venture talks are ongoing but not yet finalized.
Policy Backdrop: Diversification from Chinese Supply Chains
The move underscores growing anxiety in Washington over China’s dominance in processing and exporting critical minerals—from rare earths to copper and cobalt. Chinese firms have aggressively acquired global mining assets, prompting U.S. officials to seek new partnerships in mineral-rich regions like sub-Saharan Africa and South America.
The DFC has been active in mining-related financing since its inception, backing deals in Mozambique and infrastructure corridors in Angola. It has also worked to secure supply agreements supporting U.S. companies like Tesla and MP Materials.
A $5 Billion Commitment and Orion’s Expanding Footprint
The envisioned partnership would see both the DFC and Orion Resource Partners commit capital in equal measure, scaling toward a combined $5 billion over time. Orion, which manages $8 billion in assets, is active across private equity, credit, and commodities, and recently formed a $1.2 billion venture with Abu Dhabi’s ADQ.
Orion CEO Oskar Lewnowski has publicly called on Western governments to emulate China’s strategic approach to mineral security—including building national stockpiles to buffer against supply shocks.
Congo in Focus: Strategic Bids and U.S. Backing
Orion is currently pursuing Chemaf Resources, a copper-cobalt producer in the Democratic Republic of Congo (DRC), via a partnership with Virtus Minerals—an entity led by former U.S. military and intelligence officers. The deal comes after a previous Chinese bid fell through due to regulatory resistance.
The DRC, the world’s top cobalt producer and second-largest copper source, is central to the global EV supply chain. U.S. support for Orion’s bid signals growing willingness to counterbalance Chinese mining interests in the region.
Outlook: DFC’s Growing Strategic Mandate
The DFC is poised to expand under a reauthorization push expected next month, potentially doubling or tripling its investment firepower. The agency is also expected to gain broader authority to invest in higher-income nations and more complex projects to attract private-sector capital.
Ben Black, a financial executive with deep Wall Street ties, has been nominated to lead the DFC. His Senate confirmation remains pending.
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Final Take: America Asserts Position in Critical Minerals Race
The proposed $5 billion fund marks a turning point in U.S. efforts to reshape global mineral supply chains. As resource security becomes synonymous with national security, this public-private model could become a blueprint for future geopolitical strategy.
Disclaimer
This article is for informational purposes only and does not constitute investment or legal advice. Please consult a qualified advisor before making any financial decisions.
