Pakistan Sends 1st Shipment of Rare Earth Elements to U.S. Under $500 Million Deal

In a significant step for bilateral cooperation, Pakistan has delivered its first shipment of enriched rare earth elements and critical minerals to US Strategic Metals (USSM) in the United States.

The delivery marks the start of a $500 million partnership framework, formalized earlier this month, and signals a new phase in the Pakistan-U.S. strategic relationship.

The milestone follows the signing of two Memorandums of Understanding (MoUs) on September 8, 2025, witnessed by Prime Minister Shehbaz Sharif, Field Marshal Asim Munir, and senior officials from both Islamabad and Washington. The agreements are aligned with U.S. policy goals to diversify and secure supply chains for critical materials essential to national security, clean energy, and advanced manufacturing.

Under the new framework, Pakistan and USSM will collaborate across the entire mineral value chain, from exploration and beneficiation to concentrate production and the eventual establishment of refineries in Pakistan. The first shipment includes antimony, copper concentrate, and rare earth elements containing neodymium and praseodymium.

For Pakistan, the partnership represents entry into the global minerals supply chain, with the potential for significant revenue generation, job creation, and technology transfer. Pakistan’s natural resources are estimated at around $6 trillion, making it one of the world’s largest holders of precious metals and rare earth minerals.

For the United States, the agreement provides a strategic safeguard, helping to ensure a resilient and independent supply of critical minerals for its defense, energy, and high-tech sectors.

Stacy W. Hastie, CEO of USSM, described the delivery as “The first step in our exciting journey together with the Frontier Works Organisation of Pakistan, to provide critical minerals to the United States and bolster economic trade and friendship between our two countries.”

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