By Alexander Saeedy

JPMorgan Chase said Monday that it would directly invest $10 billion in companies it deems critical to U.S. national security, part of an initiative to help protect the American economy as trade tensions with countries such as China escalate.

The bank said it had committed to facilitating $1.5 trillion in investments for companies deemed "critical to national economic security and resiliency" over the next 10 years. That includes the $10 billion of its own capital it plans to use to take stakes in companies such as defense contractors, mineral manufacturers and artificial-intelligence firms.

"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.

Among the companies JPMorgan said it could invest in are producers of rare earths, the minerals needed to make computer chips, electric vehicles and other technologies. The bank said the companies it invests in will be primarily based in the U.S.

Last week, China's Commerce Ministry said that any company -- in China or abroad -- must get permission to export some products that derive more than 0.1% of their value from certain rare-earth materials originating in the country. China is by far the world's biggest producer of rare earths.

President Trump responded Friday by announcing the U.S. would impose a 100% additional tariff on all Chinese goods, effective Nov. 1.

JPMorgan has already been involved in the Trump administration's recent investments in companies it says are critical to safeguarding the security of the U.S. In July, the bank and Goldman Sachs agreed to lend $1 billion to MP Materials, the biggest rare-earth producer in the United States. The funds will be used to build a new factory to produce rare-earth magnets, which MP Materials sells to companies such as Apple and General Motors.

The financing was provided in connection with the Defense Department becoming the largest shareholder of MP Materials.

JPMorgan also banks Intel, one of America's most critical semiconductor manufacturers, and which the U.S. government took a 10% stake in earlier this year.

Dimon said he believed that the U.S. needed to take steps immediately to protect its economic interests.

"We need to act now," he said.

Write to Alexander Saeedy at alexander.saeedy@wsj.com

(END) Dow Jones Newswires

October 13, 2025 06:00 ET (10:00 GMT)

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