ISLAMABAD — The US Embassy in Pakistan said in a press release on Monday that the US and Pakistan’s economic and strategic connections have become stronger after they signed a major memorandum of understanding (MOU) centered on essential minerals. The US Strategic Metals (USSM) and Pakistan’s state-owned Frontier Works Organization (FWO) struck an agreement to mine and recycle important minerals like cobalt, nickel, copper, and lithium. The U.S. Department of Energy says that these minerals are very important for many innovative manufacturing and energy technologies.
Zach Harkenrider, the Acting Deputy Chief of Mission at the Embassy in Islamabad, was there for the signing event at Prime Minister House. He was with the USSM delegation. Chargé d’Affaires Natalie Baker said that the transaction was very important to the US’s security and prosperity. She said, “The Trump administration has made the forging of such deals a key priority given the importance of critical mineral resources to American security and prosperity.” She said that the agreement makes the relationship between the two countries even stronger and will be good for both sides.
This new deal is the most recent step in the U.S. and Pakistan’s growing trading relationship. The two countries signed a trade accord on July 31 that included lowering duties on both sides, especially on goods exported from Pakistan. President Donald Trump wrote on Truth Social at the time that the two countries will “work together on developing their massive oil reserves.” They are currently choosing a company to lead the relationship.
The U.S.-Pakistan deal is happening at a time when the world is competing more fiercely for important resources. India and Russia just said last month that they were looking into ways to get rare earth and essential minerals and build modern industrial infrastructure. This partnership shows that India is also working hard to protect its supply chains for these important minerals.
Last Monday, the Indian Union Cabinet approved a Rs 1,500-crore incentive plan as part of its National Critical Mineral Mission. This is similar to what the Indian government is doing to improve its own capacity. The goal of this six-year plan is to encourage the recycling of e-waste and battery debris to make important minerals. An official announcement said that the plan should assist build an annual recycling capacity of at least 270 kilotons, which will result in the production of about 40 kilotons of key minerals each year.
The rush of diplomatic and economic action around vital minerals shows how important they are becoming on the world stage, as major states try to protect their supply networks for the technologies of the future.