US metals company inks $500m MoU with Pakistan on critical minerals

Pakistan has signed a $500 million memorandum of understanding (MoU) with US-based company US Strategic Metals (USSM), it was revealed on Monday.

Taking to X, US Embassy Islamabad wrote, “Excited to see U.S. companies like USSM deepening economic ties with Pakistan! USSM’s visit to Islamabad marks an important milestone as they sign an MOU to collaborate on critical minerals production. A forward-looking partnership with great potential for both nations.”

Excited to see U.S. companies like USSM deepening economic ties with Pakistan! USSM’s visit to Islamabad marks an important milestone as they sign an MOU to collaborate on critical minerals production. A forward-looking partnership with great potential for both nations. -NB…

— U.S. Embassy Islamabad (@usembislamabad) September 8, 2025

USSM, headquartered in Missouri, specialises in the extraction and recycling of critical minerals, particularly from used lithium-ion batteries, and in the mining of cobalt, nickel, and copper.

These minerals are classified by the US Department of Energy as vital to advanced manufacturing and energy production technologies.

According to a Dawn report, citing a press release from the US Embassy, Acting Deputy Chief of Mission Zach Harkenrider accompanied a USSM-led delegation to the Prime Minister’s House, where the MoU was signed with Pakistan’s Frontier Works Organisation (FWO).

“This signing is yet another example of the strength of the US-Pakistan bilateral relationship that will benefit both countries,” said US Chargé d’Affaires Natalie Baker.

Baker said that US President Donald Trump’s administration has made forging such deals a key priority, based on the importance of critical mineral resources to American security and prosperity.

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“We look forward to seeing future agreements between US companies and their counterparts in the critical minerals and mining sector in Pakistan,” Baker added.

A statement from the Prime Minister’s Office said the US Strategic Metals (USSM) delegation is visiting Pakistan to explore opportunities for expanding mining operations and evaluating prospects for value addition in mineral resources, along with the development of related infrastructure.

“[The] delegation held high-level meetings with [the] prime minister of Pakistan, chief of army staff, minister of petroleum and minister of commerce and were briefed on Pakistan’s vast mineral reserves, including copper, gold, and rare earth elements,” The Dawn quoted the statement as saying.

“In this context, two Memoranda of Understanding, focusing on [the] development and processing of critical minerals, including rare earth elements (REEs), and logistics services, were signed,” added the statement.

The second MoU was signed between Pakistan’s National Logistics Corporation and Mota-Engil Group, an international engineering and construction company.

“The current survey of opportunities in Pakistan aims to identify priority markets where Mota-Engil can align with government visions and private sector initiatives. The group seeks to build long-term partnerships that leverage its global know-how while creating value locally through job creation, technology transfer, and sustainable development.”

According to the statement, the partnership will begin immediately with the export of readily available minerals from Pakistan, including antimony, copper, gold, tungsten, and REEs.

“The first phase of this deal is envisaged at approximately $500m of investments into Pakistan’s critical minerals sector,” the statement read.

With inputs from agencies