American Tungsten Corp. (TSXV: TUNG, OTCQB: DEMRF)
Building America’s Defense Critical Metals Supply
The United States government, in partnership with investment firm Orion Resource Partners and Abu Dhabi sovereign wealth fund ADQ, announced on Thursday the formation of a new critical minerals fund with an ambitious target of $5 billion, as Washington intensifies efforts to secure supply chains and reduce dependence on China.
Dubbed the “Orion Critical Minerals Consortium,” the initiative received strong backing from the U.S. International Development Finance Corporation (DFC). An initial capital commitment of $1.8 billion has been made by the three parties, with plans to scale the fund to $5 billion.The consortium will strategically focus on financing “existing or near-term production assets,” rather than early-stage exploration projects that could take a decade to become operational. This underscores a clear intent to achieve tangible results in the short term.
The initiative marks a significant step in bridging the massive financing gap in the U.S. critical mineral supply chain, while boosting domestic economic growth, said Oskar Lewnowski, CEO of Orion Resource Partners.DFC CEO Ben Black stated the alliance aims to “create a reliable channel for critical minerals investment.”
This fund is a core component of a broader U.S. strategy to challenge Beijing’s dominance in global mineral supply chains, particularly for materials like copper, cobalt, and rare earths, which are vital for both the defense industry and the global clean energy transition.
The fund launch coincides with a series of systematic U.S. policy moves designed to build a more resilient framework for critical mineral security.
A pivotal recent action involves a planned significant update to the U.S. Critical Minerals List. The update proposes adding six minerals—copper, silicon, potassium, silver, lead, and rhenium. More importantly, it marks a strategic shift by introducing a first-ever classification of minerals based on supply chain risk levels, moving national resource policy from broad support toward precise risk identification and management.
Washington is also deepening mineral cooperation with allies. Earlier this week, the U.S. and Australia signed a landmark agreement to enhance access to rare earths and other critical materials. In a joint press conference, President Trump claimed, A year from now… we’re going to have more critical minerals and rare earths than we can even handle. The administration is also in talks with the Democratic Republic of Congo, the world’s largest cobalt producer and a major copper supplier, for a similar bilateral pact.
Since returning to the White House, the Trump administration has also utilized direct equity investments in mining companies. In October, the government announced a $36.5 million investment for a 10% stake in Canadian miner Trilogy Metals (TMQ). In July, MP Materials, the only U.S. rare earths miner, entered a public-private partnership with the Department of Defense to develop a domestic rare earth magnet supply chain.
Simultaneously, industry lobbying in Washington has surged. A Reuters review of public records and interviews with industry executives and officials reveals that at least a dozen lithium, copper, rare earths, and geothermal companies have hired prominent lobbying firms this year to seek federal investment, project permitting support, and long-term purchase guarantees.
While private capital, such as a recent multi-billion dollar commitment from JPMorgan, is flowing into the sector, government funding remains crucial. Private investors often remain cautious about financing junior mining companies and emerging processing technologies, highlighting the continued essential role of strategic federal investment.
