Pakistan has sent its very first shipment of enriched rare earth elements and essential minerals to the United States, kicking off a USD 500 million partnership that was officially established just last month.
The shipment that arrived at the US Strategic Metals (USSM) on Thursday is expected to influence the strategic partnership between Pakistan and the US significantly.
Inking the deal
In September, Pakistan's Frontier Works Organisation (FWO) teamed up with USSM from Missouri to ink a USD 500 million Memorandum of Understanding (MoU) aimed at establishing a poly-metallic refinery in Pakistan.
The shipment & its content
Pakistan's Prime Minister Shehbaz Sharif praised the recent shipment as a significant step towards creating secure and diverse supply chains that will benefit both countries. Stacy W. Hastie, the CEO of USSM, referred to it as the first move in providing essential minerals to the US, while also enhancing economic relationships and promoting cooperation between the two nations.
The first shipment included antimony, copper concentrate and some rare earth elements like neodymium and praseodymium, as stated in an official announcement from both countries.
Benefiting the US
The US has been making strides to strengthen its domestic supply chain for critical minerals and reduce its dependence on China. Back in August 2025, the Department of the Interior put forward a significant update to its list of essential minerals, adding six new items, including copper and silver. This move underscores their vital role in ensuring national security and economic stability.
Also read: Pakistan-based aluminium can manufacturer increases production volume
Recently, the US Department of Energy announced an exciting initiative to allocate nearly USD 1 billion in funding aimed at boosting the mining, processing and manufacturing of essential minerals and materials. This move is in line with Trump's Unleashing American Energy executive order, which seeks to strengthen domestic supply chains that are crucial for our energy, defence and industrial competitiveness.
Benefiting Pakistan
For Pakistan, this partnership is a significant step into the global minerals supply chain, opening doors to major revenue, job opportunities and the transfer of technology. With its natural resources estimated to be worth around USD 6 trillion, the country ranks among the largest holders of precious metals and rare earth minerals in the world.
Pakistan playing the "Trump card"
In a significant meeting at the White House, Pakistan's leaders took the opportunity to highlight their extensive mineral resources to Trump, to bolster economic relations with the United States. They showcased samples of rare earth minerals like bastnasite and monazite, which are rich in elements such as cerium, lanthanum and neodymium.
This strategic effort highlights Pakistan's ambition to become a significant player in the global critical minerals supply chain, providing the US with an alternative to China's stronghold in this industry.
Major stocks of rare earth
Lithium Corporation, a small-cap company valued at just USD 5 million, has made a significant discovery at its fluorspar project in British Columbia. It has found rich deposits of neodymium, dysprosium and other rare earth elements. This exciting news sent their shares soaring by over 900 per cent, closing at USD 0.44 on Thursday.
In an exciting move, USA Rare Earth Inc. is gearing up to acquire Less Common Metals, a company based in the UK. This acquisition is a key step in their mine-to-magnet strategy, which aims to create a fully integrated rare earth supply chain. It will also bolster their upcoming magnet manufacturing facility in Oklahoma.
With its first shipment finally docked and a comprehensive investment strategy in place, Pakistan is stepping into the spotlight as a significant contender in the global critical minerals market.
Also read: Indo-Pak standoff: A repeat of aluminium trade disruptions like the Ukraine-Russia conflict?
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