US to put US$250 million toward supply chain investment fund
Investment consortium would include SoftBank, Temasek and Mubadala
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[WASHINGTON] The US plans to contribute US$250 million towards an investment consortium that would help fund projects aimed at strengthening supply chains for energy and critical minerals, according to a Trump administration official.
Under Secretary of State for Economic Affairs Jacob Helberg said on Monday (Mar 23) that the US would administer the consortium, which would bring together as much as US$1 trillion in assets under management from sovereign wealth funds and institutional investors. Other participants would include SoftBank Group, Temasek Holdings and the Abu Dhabi-based Mubadala Investment wealth fund, he said.
A top priority for the consortium are investments that focus on preserving access to energy and rare earths for the US and its allies, Helberg said, especially “mineral security, logistics, and likely energy security infrastructure.” He said the US and the institutional investors will be reviewing a list of projects.
“We’re starting it as a coalition,” Helberg said. “We’re going to get together in a room, and we already have a list of projects that we’re going to review, and we’re going to talk about making joint investment decisions.”
Congress would soon be notified regarding plans for the US$250 million US commitment, he said.
Representatives for Tokyo-based SoftBank, Singapore-based Temasek and Mubadala did not immediately respond to requests for comment on the proposal.
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The fund is part of a broader US-led supply-chain alliance known as Pax Silica, which has expanded to include energy infrastructure projects following the blockade of the Strait of Hormuz. We want to avoid “single-points of failure,” Helberg said, pointing at the ripple effects in energy markets since the start of the war with Iran. Deputy Energy Secretary James Danly will be leading the energy effort, Helberg said.
The initiative seeks to address growing concerns about the fragility of the global supply chain exposed by the nearly monthlong conflict. Energy infrastructure and key shipping routes around the Gulf region have been targeted during the conflict, disrupting flows of oil, natural gas and critical inputs for global manufacturing.
Pax Silica, an alliance designed to increase global cooperation on supply chains for advanced manufacturing, counts Japan, India, South Korea, the UK, United Arab Emirates, Qatar and Singapore among its members. BLOOMBERG
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