JPMorganChase (NYSE:JPM) unveiled on Monday its Security and Resiliency Initiative, a $1.5T, 10-year plan to invest in industries critical to national economic security and resiliency. The company itself will make direct equity and venture capital investments of up to $10B to help select companies primarily in the U.S. enhance their growth, spark innovation, and accelerate strategic manufacturing, the company said.
JPMorganChase (NYSE:JPM) stock rose 1.1% in premarket trading.
“It has become painfully clear that the United States has allowed itself to become too reliant on unreliable sources of critical minerals, products and manufacturing – all of which are essential for our national security,” Chairman and CEO Jamie Dimon said. “America needs more speed and investment. It also needs to remove obstacles that stand in the way: excessive regulations, bureaucratic delay, partisan gridlock and an education system not aligned to the skills we need.”
The company will focus on four key areas, supporting companies across all sizes and development stages by offering advice, providing financing, and, in some cases, investing capital. Those areas are:
- Supply chain and advanced manufacturing, including pharmaceutical precursors, critical minerals, and robotics.
- Defense and aerospace, including defense technology, autonomous systems, drones, next-gen connectivity, and secure communications.
- Energy independence and resilience, including battery storage, grid resilience, and distributed energy.
- Frontier and strategic technologies, including AI, cybersecurity, and quantum computing.
Furthermore, JPMorgan’s (NYSE:JPM) initiative divides those four main sectors into 27 sub-areas, including such things as nuclear energy, nanomaterials, shipbuilding, and critical defense components.
The company plans to facilitate and finance ~$1T over the next decade in support of clients in the earmarked industries. With additional resources, capital and focus, JPMorganChase (JPM) targets an increase by up to $500B, to be applied to both middle-market companies and large corporate clients.
To support the initiative, the company will hire more bankers, investment professionals, and other experts. JPMorganChase (JPM) will also form an external advisory council comprised of leaders from the public and private sectors.
The company will also produce special, thematic research on private companies and supply chain management issues related to rare earths, AI, and technology. That will be complemented by JPMorgan’s recently formed Center for Geopolitics.
Another component of the initiative is policy. JPMorganChase (JPM) said it will advocate for policies that can accelerate its efforts, including research and development, permitting, procurement, and regulations conducive to growth.