TLDR
- JPMorgan Chase announced a $1.5 trillion, 10-year plan to support US companies in sectors critical to national security and economic resilience.
- The bank will directly invest up to $10 billion through equity and venture capital in defense, energy, manufacturing, and technology companies.
- The initiative covers 27 sub-sectors including shipbuilding, nuclear energy, semiconductors, pharmaceuticals, and artificial intelligence.
- JPMorgan plans to facilitate $1 trillion in financing for these industries, a 50% increase from previously planned amounts.
- The bank will hire more bankers and investment professionals and establish an advisory council to support the initiative.
JPMorgan Chase unveiled a major investment initiative on Monday aimed at supporting American companies tied to national security. The bank’s new Security and Resiliency Initiative commits $1.5 trillion over the next decade to four key sectors.
The program includes up to $10 billion in direct equity and venture capital investments. These funds will target companies working in defense, energy independence, supply chain manufacturing, and frontier technologies. JPMorgan will deploy this capital through its investment arms into companies ranging from mid-sized firms to Fortune 500 corporations.
Chairman and CEO Jamie Dimon said the United States has become too dependent on foreign sources for critical materials and products. He stated that national security depends on economic strength and resilience. The bank serves 34,000 mid-sized companies and more than 90% of Fortune 500 firms.
The announcement follows recent Trump administration efforts to modernize infrastructure and reduce foreign supply chain dependencies. President Donald Trump has pushed for domestic production in sectors like pharmaceuticals, semiconductors, clean energy, and rare earth minerals. Trump recently revived trade tensions with China after Beijing restricted rare earth exports.
JPMorgan’s plan covers 27 specific sub-sectors within four main areas. The supply chain and manufacturing category includes critical minerals, pharmaceutical precursors, and robotics. Defense and aerospace investments will support military contractors and related companies.
Investment Focus Areas
The energy independence sector targets battery storage, grid resilience, and nuclear power projects. Strategic technologies encompass artificial intelligence, cybersecurity, quantum computing, nanomaterials, and secure communications. The bank identified these areas based on current vulnerabilities in US supply chains.
JPMorgan had already planned to facilitate about $1 trillion in financing for these industries over the next decade. The bank is now increasing that figure by $500 billion, representing a 50% expansion. This brings the total commitment to $1.5 trillion when combined with the $10 billion direct investment fund.
The bank recently helped structure a deal between the Defense Department and MP Materials. That transaction involved a $400 million government investment in the US rare earths mining company. JPMorgan is also providing financing for MP Materials’ second magnet production facility in America.
Building the Team
Andrew Castaldo, JPMorgan’s co-head of mid-cap mergers and acquisitions, said the bank has held over 100 client calls about the MP Materials deal. The bank has made multiple trips to Washington to explore similar opportunities with government officials. The US government is pursuing deals across up to 30 industries involving dozens of companies.
JPMorgan plans to hire additional bankers and investment professionals to support the initiative. The bank will create an external advisory council with leaders from public and private sectors. This council will help guide the long-term strategy of the program.
The firm will expand research on supply chain vulnerabilities using its Center for Geopolitics. This research will identify emerging technologies and security risks. The bank aims to provide clients with better intelligence about global supply chain issues.
Dimon called for policy changes to accelerate the initiative’s goals. He cited excessive regulations, bureaucratic delays, and partisan gridlock as obstacles. He also mentioned the need for education system reforms to align with required skills.
JPMorgan shares rose 1.4% in pre-market trading following the announcement. The bank plans to begin deploying capital immediately across the identified sectors. The initiative will run through 2035 with regular progress assessments.
