Pakistan Sends First-Ever Rare Earth Shipment To U.S. Under $500 Million Deal

Pakistan has exported its first-ever shipment of rare earth elements and critical minerals to the United States, marking the beginning of a $500 million partnership between Islamabad and Missouri-based U.S. Strategic Metals (USSM).

The development follows an agreement signed in September aimed at strengthening bilateral cooperation in mineral exploration and processing.

The consignment, prepared locally in coordination with the Frontier Works Organisation (FWO), includes antimony, copper concentrate, and rare earth elements such as neodymium and praseodymium, according to Dawn.

Officials said the delivery represents a major step in implementing the newly signed framework between Pakistan and the U.S. for developing the entire mineral value chain.

Two Memorandums of Understanding (MoUs) were signed on 8 September 2025 between the Government of Pakistan and USSM, witnessed by Prime Minister Shehbaz Sharif, Field Marshal Asim Munir (N.I.), and senior officials from both countries.

The agreement sets out cooperation in exploration, beneficiation, processing, and the establishment of refining facilities within Pakistan.

According to government sources, the arrangement aligns with U.S. President Donald Trump’s strategy to diversify supply chains for critical materials needed in defence, renewable energy, and advanced manufacturing sectors.

Officials in Islamabad said the deal will help Pakistan enter the global minerals supply network, potentially generating substantial revenue and employment while supporting technology transfer.

The country’s mineral reserves are estimated at around USD 6 trillion, placing it among nations with significant untapped natural resources.

A statement released by USSM described the first shipment as a “milestone” in the Pakistan–U.S. partnership, adding that the company intends to expand cooperation with the FWO in the coming phases. The American firm specialises in the production and recycling of critical minerals identified by the U.S. Department of Energy as vital for modern technologies.

The partnership offers the U.S. an opportunity to strengthen supply security for strategic materials while reducing dependency on dominant suppliers that currently control the global market.

However, the agreement has drawn criticism from Pakistan’s opposition party, Pakistan Tehreek-e-Insaf (PTI). Party Information Secretary Sheikh Waqqas Akram urged the government to disclose full details of what he termed “secret deals” with Washington. He argued that such arrangements must be debated in parliament and made public to ensure transparency.

Reference: US Strategic Metals

Source: Maritime Shipping News