VANCOUVER, October 14, 2025: The United States government has taken a 10 percent equity stake in Canada-based Trilogy Metals Inc., intensifying its involvement in the North American critical minerals sector. The deal, valued at $35.6 million, includes warrants that could raise Washington’s share to 17.5 percent, according to company disclosures and regulatory filings. The investment marks a significant shift in U.S. policy to secure critical mineral supplies through direct ownership in foreign-listed mining firms. The move follows the Trump administration’s decision to reverse a 2023 policy that had blocked the construction of a 340-kilometer access road to Alaska’s Ambler mining district, where Trilogy Metals operates a joint venture with South32 Ltd.
The project, which targets copper, cobalt, zinc and other essential minerals, had previously faced opposition due to environmental and community concerns. The Bureau of Land Management has now authorized construction to proceed. The U.S. Department of Defense made the equity investment through its Industrial Base Analysis and Sustainment (IBAS) program under the Defense Production Act, part of a broader effort to build resilience in critical mineral supply chains. The rare earth and battery metals mined from the Ambler district are considered essential to U.S. defense, energy and technology sectors.
The deal with Trilogy Metals is one of several under active consideration. U.S. officials have confirmed negotiations to acquire a minority stake in Critical Metals Corp., the U.S.-listed company developing the Tanbreez rare earth project in Greenland. That investment, still pending final approval, may involve converting a $50 million Defense Production Act grant into an equity position. The Tanbreez site is expected to begin production in 2026 with an estimated annual output of 85,000 metric tons of concentrate. The equity acquisitions coincide with China’s recent tightening of export controls on critical minerals and related technologies.
China export controls spur urgency in North America
Earlier this month, the Chinese Ministry of Commerce announced new restrictions affecting the export of rare earth processing technologies, citing national security reasons. The measures have added urgency to efforts by the United States and its allies to diversify supply chains and reduce dependence on Chinese sources. Canada’s federal government has not publicly commented on the U.S. acquisition of equity in a domestic resource firm. Under Canada’s Investment Canada Act, foreign investments in critical sectors are subject to national security reviews.
However, officials have previously indicated openness to strategic cooperation with allies on critical mineral development, particularly within the framework of the Canada-U.S. Critical Minerals Action Plan. Trilogy Metals confirmed that the transaction had been reviewed by Canadian authorities and did not trigger any requirement for additional oversight or approval under existing foreign investment regulations. The company said the funding would be used to advance pre-development and permitting activities at the Upper Kobuk Mineral Projects in Alaska.
Rare earth strategies increasingly geopolitically sensitive
The U.S. government has significantly increased its financial commitments to the critical minerals sector in recent years. In addition to grants and loan guarantees, direct equity investments represent a new tool to support domestic and allied supply chains. According to data from the U.S. Department of Energy, over $500 million has been allocated since 2021 to critical minerals projects under the Defense Production Act alone. Market reaction to the announcement has been positive. Trilogy Metals shares rose more than 12 percent on the Toronto Stock Exchange following the news. – By Content Syndication Services.