WASHINGTON/KARACHI — As part of a major strategic move, the U.S. government has initiated urgent measures to secure critical mineral supplies—including antimony, cobalt, neodymium (Nd), and praseodymium (Pr)—declaring them essential for national security. The White House has directed immediate financing under the Defense Production Act (DPA) Title III, with up to $10 billion potentially available to strengthen the supply chain from mine to finished product.
The U.S. Department of Defense (DoD) has already started stockpiling key minerals. Contracts worth $245 million for antimony have been awarded, with $500 million more in cobalt procurement underway. In addition, the Pentagon has approved $400 million in preferred equity and $150 million in direct lending, ensuring a guaranteed demand for these strategic resources.
A Strategic Opening for Pakistan
Pakistan, home to significant reserves of these critical minerals, has an opportunity to integrate directly into this supply chain. The U.S. is financing not just raw material extraction but the full “mine-to-magnet” production process. Under such arrangements, Pakistani concentrates could be processed in U.S. refineries to produce certified ingots, oxides, and alloys, which are then sold to the U.S. defense sector through secure, government-backed offtake agreements.
Fast Track: Antimony for Quick Revenue
Industry experts say antimony offers the quickest route to cash flow, as it involves low-capex smelting and short turnaround times—from mining to revenue in 3 to 6 months. This allows Pakistan to start earning quickly while preparing to scale up more complex operations.
Long Game: Rare Earth Elements for Strategic Capacity
In parallel, rare earth elements (REEs)—particularly Nd and Pr—can be developed to produce high-value magnets, crucial for defense, energy, and technology sectors. Unlike antimony, building a REE-to-magnet supply chain can take 2 to 3 years, but the long-term returns are far greater.
U.S. Financing Pipeline
The Export-Import Bank of the United States (EXIM) can fund equipment and working capital, while the U.S. International Development Finance Corporation (DFC) provides political risk coverage and long-term financing. Meanwhile, the Office of Strategic Capital (OSC) can mobilize private investment, creating a complete financial stack for Pakistani participation.
Turning Resources into Revenue
By combining Pakistani mineral feedstock with U.S. financing and guaranteed defense offtakes, Pakistan can transform its raw materials into a high-value export stream. The model is simple:
Pakistani concentrates
U.S. toll refining and certification
DoD-backed offtake and escrowed payments
This is not just about exporting rock — it’s about exporting value. By strategically linking its resource base with U.S. national security supply chains, Pakistan can convert its mineral wealth into stable, high-value dollar flows.
Rock to magnet. Magnet to dollar.
