First batch of rare earth elements reaches US in landmark Pakistan deal

WEB DESK: Pakistan has dispatched its first shipment of enriched rare earth elements and critical minerals to United States Strategic Metals (USSM), marking the start of a $500 million partnership aimed at strengthening trade and technology ties between the two countries.

The delivery, completed on Thursday, follows the signing of a Memorandum of Understanding (MoU) in September between Pakistan’s Frontier Works Organisation (FWO) and USSM, a Missouri-based company that specialises in producing and recycling critical minerals. Under the agreement, the two sides plan to establish a poly-metallic refinery in Pakistan.

First shipment marks new chapter in Pakistan-US minerals partnership

Prime Minister Shehbaz Sharif had hailed the partnership as a significant step toward building secure and diversified supply chains. He noted that the collaboration would not only benefit both nations but also open new avenues for economic engagement and technological cooperation.

“This is the beginning of a partnership that will create opportunities for growth, stability and mutual prosperity,” the prime minister said, recalling that during his recent discussions with US leadership, President Donald Trump had directed American companies to explore investment opportunities in Pakistan. Shehbaz added that several joint ventures were also in the pipeline.

Minerals with trillion-dollar potential

According to details shared by PRNewswire, the initial shipment included antimony, copper concentrate, and rare earth elements such as neodymium and praseodymium. These minerals are vital in modern technologies, from smartphones and electric vehicles to defence equipment and renewable energy systems.

According to some reports, Pakistan’s natural resources are estimated at around $6 trillion, making it one of the largest holders of precious metals and rare earth deposits in the world. Experts believe the current partnership could set the stage for Pakistan to emerge as a major supplier of critical minerals at a time when global demand is surging.

Strengthening economic ties

Stacy W. Hastie, CEO of USSM, described the arrival of the first batch as an important beginning. “We see this as the first step in our exciting journey with FWO of Pakistan to provide critical minerals to the United States and strengthen economic trade and friendship between our two countries,” Hastie said.

The agreement is part of a broader push by Washington to diversify its mineral supply chains, which are currently heavily dependent on China. The United States Department of Energy has highlighted the importance of securing supplies of minerals like neodymium and praseodymium for advanced manufacturing and clean energy technologies.

US Chargé d’Affaires Natalie Baker also welcomed the partnership, saying the agreement demonstrated the strength of the US-Pakistan bilateral relationship. “This signing is yet another example of how cooperation in key sectors can benefit both countries,” she said in a statement.

Future prospects for Pakistan-US partnership

The partnership between Pakistan and USSM is expected to expand in phases, with further shipments and investment projects planned in the coming months. The refinery project in Pakistan is also anticipated to create jobs, transfer technology, and boost the country’s export potential.

For Islamabad, the deal is a chance to turn its untapped mineral wealth into a driver of economic growth, while for Washington, it represents an opportunity to secure vital resources for industries that are shaping the future.

Observers note that if implemented effectively, this collaboration could mark the beginning of a new chapter in Pakistan-US relations, shifting the focus from traditional aid-based ties to trade-driven cooperation.

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