The developments represent the most significant shift in U.S. resource policy since Executive Order #14196 established America's first sovereign wealth fund. Interior Secretary Doug Burgum confirmed the administration is now making direct "equity investments in companies taking on China in critical minerals."

The urgency stems from a stark reality: China controls 70% of global rare earth mining and 90% of processing capacity. The U.S. currently imports 80% of its rare earth needs, with 70% coming directly from China—materials essential for F-35 fighter jets, missile systems, and advanced electronics.

China's recent export restrictions on seven critical rare earth elements have already disrupted global supply chains. Japanese automaker Suzuki temporarily suspended production of its Swift car, while European auto parts companies have halted operations entirely. MP Materials, owner of America's only operational rare earth mine, was forced to stop shipments to China after Beijing imposed 125% tariffs.

The transformation extends beyond individual investments. Trump's "Mining Order" has cut permit approval timelines from 7-10 years to as little as 28 days for projects deemed critical to national security. The Thacker Pass lithium project in Nevada received federal permits in just 89 days—a process that historically required nearly a decade.

According to the Financial Times, the U.S. government controls more than $100 trillion in assets including land, buildings, and natural resources. This wealth, spread across "reserve accounts" in states like Wyoming ($16.4 trillion), Texas ($1.22 trillion), and Pennsylvania ($2.5 trillion), forms the foundation of the new sovereign wealth fund strategy.

The administration has granted "emergency status" to specific mining projects, effectively fast-tracking companies that control deposits of minerals classified as "Tier 1 critical" by the Department of Defense. These designations carry federal financing, guaranteed government procurement, and accelerated regulatory approval.

Industry executives are calling this shift "a game-changer for capital allocation" comparable to Franklin D. Roosevelt's New Deal infrastructure programs. The National Mining Association has dubbed it "The New Deal for Minerals."

The government is establishing strategic mineral reserves similar to the Strategic Petroleum Reserve, creating guaranteed domestic demand for American-produced materials. The Pentagon is also building metals-refining facilities directly on military bases to ensure secure supply chains independent of foreign control.