The United States and Abu Dhabi governments will jointly invest $1.8 billion with private equity firm Orion Resource Partners to develop mining and refining projects around the world, in a move designed to secure Western access to critical minerals such as lithium, rare earths, copper, and uranium.
The investment comes as major economies seek to reduce reliance on China, which dominates global supply chains for critical minerals. The new Orion Critical Mineral Consortium, backed by the U.S. International Development Finance Corp (DFC), Abu Dhabi sovereign wealth fund ADQ, and Orion, will each contribute $600 million to the initiative.
See also: Indonesia’s Nickel Producer Anugrah Neo Energy Materials Plans $300 Million IPO to Boost Expansion
The consortium aims to expand its funding to $5 billion by attracting additional global partners and will focus on projects that can be brought into production quickly, bypassing early-stage exploration. “What we’re focused on is projects that are in production or can be put into production in the very near term to get material back to the U.S. and allied nations,” said Frank Fannon, the consortium’s managing partner and a former U.S. assistant secretary of state for energy resources.
Orion’s founder and CEO, Oskar Lewnowski, said the group will prioritize supply chain resilience by investing not only in mines but also in processing facilities. “We are absolutely committed to funding the supply chain to the extent necessary to secure end-stage product for customers and consumers,” Lewnowski said.
See also: Australia Plans Critical Minerals Reserve Focused on Future Sales Rather Than Stockpiling
The DFC, which already holds a stake in mining company TechMet, will play a role in investment decisions. Executives said this involvement could help reduce geopolitical risks in emerging markets. “The (U.S.) government certainly brings a lot to bear, particularly in emerging market contexts, and that makes investments that much more tenable for us,” Lewnowski added.
The move follows similar initiatives in recent months as Western nations accelerate efforts to diversify critical mineral sourcing. Earlier this week, private equity firm Appian Capital Advisory and the International Finance Corporation launched a $1 billion fund targeting projects in Africa and Latin America.
See also: China Tightens Export Controls on Rare Earths Used in Electric Vehicles
Asked about potential interest in Ukraine’s mining sector, Lewnowski offered a cautious hint, saying, “Ukraine has some very interesting rocks. And let’s leave it at that.”
The new partnership underscores Washington’s growing willingness to take direct stakes in strategic resources, a trend that began during Donald Trump’s first term when the U.S. government backed companies such as MP Materials and Lithium Americas to strengthen domestic and allied supply chains.
Source: Reuters