JPMorgan mobilized $230 billion for critical US industries — Fortune
In the United States, JPMorgan Chase financed or helped raise $230 billion over the course of a year for industries it considers important to economic and national security, including critical minerals extraction, defense and advanced technologies. Fortune reported this, citing the bank. The funds are part of the 10-year Security and Resiliency Initiative totaling $1.5 trillion.
JPMorgan also said it had allocated $5 billion of its own capital for investments in defense companies, including Hadrian and Castelion. This is half of the initially planned $10 billion. The bank's CEO, Jamie Dimon, said that a strong economy and national security require investment in critical infrastructure, manufacturing, energy, defense and innovation, as well as policies that support growth.
Investments in critical minerals
JPMorgan invested $75 million in Perpetua Resources, obtaining a 2.7% stake in the company, which is developing an antimony deposit in Idaho. According to Fortune, it is expected to contain the only identified U.S. reserve of this mineral, which is used in ammunition production.
More current news is available on the UA.News Telegram channel Telegram.
The bank is also helping arrange financing for Korea Zinc's $7.4 billion project in Clarksville, Tennessee. The critical minerals processing facility is expected to begin commercial operations in 2029 and produce, among other things, zinc, germanium and gallium. The project includes $1.4 billion in equity and debt financing from the Pentagon and $210 million from the U.S. Department of Commerce.
Defense projects
JPMorgan participated in arranging $1 billion in financing for MP Materials to increase production of rare-earth magnets in the United States. Such magnets are used in fighter jets. The deal was accompanied by an investment after which the U.S. Department of Defense became the company's largest shareholder.
The bank also led Hadrian's nearly $1.4 billion funding round and an $800 million round for Castelion. Hadrian is building automated factories for precision weapons, while Castelion is developing hypersonic missiles. In addition, in January, JPMorgan advised L3Harris on the Pentagon's $1 billion investment in its missile business, which produces components for Tomahawk and Patriot missiles.
