Pakistan has signed a $500 million memorandum of understanding (MoU) with the US Strategic Metals (USSM), a Missouri-based American company specializing in critical minerals. The agreement, signed at the Prime Minister’s House and facilitated by the Frontier Works Organisation (FWO), focuses on developing and processing essential resources such as copper, gold, rare earth elements, and other critical minerals.
USSM extracts metals from old lithium-ion batteries and mines cobalt, nickel, and copper, highlighting the strategic importance of these materials for advanced manufacturing and energy technologies.
The MoU signing was attended by Acting Deputy Chief of Mission Zach Harkenrider and US Chargé d’Affaires Natalie Baker, who emphasized that the agreement demonstrates the strength of the US-Pakistan bilateral relationship.
Baker noted that the Trump administration prioritizes such partnerships to secure critical mineral resources essential for American security and technological advancement. She also expressed optimism about future collaborations between US and Pakistani companies in the mining and critical minerals sectors.
During their visit, the USSM delegation held high-level meetings with Pakistan’s prime minister, chief of army staff, and ministers of petroleum and commerce. The discussions focused on Pakistan’s vast mineral reserves, including copper, gold, and rare earth elements, as well as opportunities for value addition and infrastructure development.
In parallel, the National Logistics Corporation of Pakistan signed a second MoU with the Mota-Engil Group to enhance logistics services and engineering support, with an emphasis on job creation, technology transfer, and sustainable development.
The partnership is expected to begin immediately with the export of minerals such as antimony, copper, gold, tungsten, and rare earth elements. The initial phase of the project is valued at approximately $500 million, signaling significant investment into Pakistan’s critical minerals sector.
The deal aligns with the broader trend of improving US-Pakistan relations, including recent trade agreements that reduced reciprocal tariffs from 29% to 19%.
US officials have highlighted the strategic importance of Pakistan’s mineral resources in advancing American technologies, making this partnership a milestone in long-term cooperation between the two nations.
