JPMorgan Chase announces $1.5T security and resilience initiative

by · UPI

Oct. 13 (UPI) -- JPMorgan Chase unveiled plans Monday for a 10-year, $1.5 trillion initiative to provide funding and invest in sectors, from rare minerals to cutting-edge technologies, seen as critical to the economic security and resilience of the United States.

The world's largest bank said it would invest $10 billion of that directly, via equity and venture capital funding, to help selected companies, mostly in the United States, boost growth, drive innovation and accelerate strategic manufacturing.

"It has become painfully clear that the United States has allowed itself to become too reliant on unreliable sources of critical minerals, products and manufacturing -- all of which are essential for our national security," said JPMorgan Chase Chairman and CEO Jamie Dimon.

"Our security is predicated on the strength and resiliency of America's economy. America needs more speed and investment. It also needs to remove obstacles that stand in the way: excessive regulations, bureaucratic delay, partisan gridlock and an education system not aligned to the skills we need," Dimon said.

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JPMorgan Chase will provide advice, financing and capital to medium and large companies working in supply chain and advanced manufacturing, including critical minerals, drug raw materials and robotics, and defense and aerospace, such as autonomous systems, drones, next-gen connectivity and secure communications.

Other areas of focus covered included energy independence and resilience, including battery storage, grid resilience and distributed energy and advanced technologies like AI, cybersecurity and quantum computing.

The Wall Street firm said the plan represented a 50% increase over an existing, similar, $1 trillion Security and Resilience Initiative.

Dimon said the new scaled-up plan added in emerging imperatives such as securing reliable access to life-saving medicines and critical minerals, "defending our nation, building energy systems to meet AI-driven demand and advancing technologies like semiconductors and data centers."

"Our support of clients in these industries remains unwavering," Dimon pledged.

An unspecified number of bankers would be hired and an external advisory council would be formed to support the initiative, the bank said.

At a time of rising trade, military and geopolitical tensions with Beijing, the move helped shift the company's business closer in line with the national interests of the United States, CNBC said.

Monday's announcement came three days after U.S. President Donald Trump imposed market-rattling 100% tariffs on Chinese imports in retaliation for China imposing more stringent export controls on rare earths a day earlier.

The minerals are critical for the manufacturing of U.S. weapons, robotics, electric vehicles and electronics.

The new Chinese restrictions require foreign companies to obtain a special export license where rare earths constitute 0.1% or more of the value of a product.

Trump's response, which included new restrictions on U.S. exports of "critical software" to China beginning in November, caused stock markets to fall.

However, share prices of mining companies involved in the extraction and processing of rare earth minerals spiked sharply higher, led by USA Rare Earth, MP Materials and Energy Fuels, which rose by 19%, 11% and 9%, respectively.