On Monday, October 13, JPMorgan Chase Bank announced a 10-year, $1.5 trillion investment plan aimed at investing in artificial intelligence, manufacturing, and critical minerals industries. The initiative named “Security and Resilience Initiative” will focus on industries crucial to U.S. national security, including direct investments of $10 billion in specific enterprises.
The plan will target four key industries: supply chain and advanced manufacturing, defense and aerospace, energy independence and resilience, as well as frontier and strategic technologies, further divided into 27 sub-industries.
Following the announcement, stocks of rare earth mining companies surged. Stocks of USA Rare Earth Inc. soared by 32%, MP Materials rose by 24%, and Lithium Americas Corp. saw an 11% increase.
JPMorgan Chase had previously allocated $1 trillion for investments in the aerospace, energy, and defense industries. This additional investment will further solidify its influence in critical minerals and other sectors.
President Trump’s administration has been intensifying efforts to strengthen U.S. influence in crucial minerals industries, especially in response to Beijing using restrictions on rare earth exports as a bargaining chip in trade negotiations. Restrictions on rare earth materials could significantly impact high-tech industries and even defense production.
Jamie Dimon, Chairman and CEO of JPMorgan Chase, expressed, “It is heartbreaking that the U.S. has relied too heavily on unreliable sources for critical minerals, products, and manufacturing, which are crucial for our national security.”
The latest investment by JPMorgan Chase also aligns with the White House’s “America First” agenda, aiming to ensure U.S. independence in emerging technologies, energy, and critical infrastructure.
In March, President Trump signed an executive order utilizing war emergency powers to expand U.S. production of critical minerals and rare earth materials. To reduce reliance on foreign rare earth supplies, the U.S. government has begun investing in rare earth manufacturers like MP Materials, mining companies like Trilogy Metals, and semiconductor giant Intel over the past few months.
The “America First” agenda also orders a comprehensive review of U.S. trade policies, prompting many Wall Street giants to commit to investing in domestic manufacturing.
Masayoshi Son, CEO of SoftBank Group in Japan, pledged a $100 billion investment to accelerate the development of AI and other critical infrastructure projects in the U.S.
Apple and Nvidia also announced similar plans to increase their manufacturing output in the U.S.
Dimon stated in a media conference call on Monday that the U.S. needs to take immediate steps to protect its economic interests.
He mentioned that JPMorgan Chase’s latest investment move may receive approval from the White House and could lead to collaboration with the bank in certain transactions.