In an effort to boost the American economy in the face of growing trade tensions with nations like China, JPMorgan Chase said Monday that it will directly invest $10 billion in businesses it deems essential to U.S. national security.
Additionally, Over the next ten years, the bank pledged to facilitate $1.5 trillion in investments for companies it considers “critical to national economic security and resiliency.” This plan includes $10 billion of JPMorgan’s own funds, which the bank will use to invest in defense contractors, mineral producers, and artificial intelligence companies.
JP Morgan to invest $10 Billion into national security companies
“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 Chief Executive Jamie Dimon.
Consequently, JPMorgan executive Mary Erdoes stated that, depending on how well the plan works, the bank may grow beyond the $10 billion mark. “Many of these companies are long-standing clients of ours where we want to put our muscle behind them,” said Erdoes, who oversees the bank’s asset and wealth management division.
The bank identified potential investments in rare-earth producers—businesses that supply the raw materials needed for advanced technologies like computer chips and electric cars. JPMorgan stated that its primary focus will be on U.S.-based companies.
Recently, China’s Commerce Ministry declared that any company, whether domestic or foreign, that wants to export goods that contain more than 0.1% of specific rare-earth materials from China must apply for permission. The nation continues to be the leading producer of rare earth elements worldwide.
Additionally, President Trump responded on Friday by declaring that starting on November 1, the United States would levy an additional 100% tariff on all Chinese goods. “Don’t worry about China, it will all be fine!” he wrote on social media on Sunday.
JPMorgan has already been a key player in the Trump administration’s recent initiatives to support U.S. security-related industries. Also, MP Materials, the biggest rare-earth manufacturer in the United States, received a $1 billion loan from JPMorgan and Goldman Sachs in July to build a new factory that will produce rare-earth magnets for customers like Apple and General Motors. Lastly, that transaction made the Defense Department the largest shareholder in MP Materials.
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