New critical minerals fund gets USD 600 mn commitment from ADQ: Abu Dhabi sovereign wealth fund ADQ has joined the US government and private equity fund Orion Resource Partners to invest in a USD 1.8 bn fund targeting critical minerals and refining projects, according to a statement. They will each commit USD 600 mn to the fund, also known as the Orion Critical Mineral Consortium, which is targeting an eventual pool of USD 5 bn.

The fund aims to invest in existing and near-term critical minerals projects internationally, challenging China’s dominance in the sector, the statement said. This includes midstream and upstream projects in the supply chain, including potentially smelting, Orion CEO Oskar Lewnowski told Bloomberg. It will manage offtake and develop domestic processing,

It comes amid US President Donald Trump’s push to secure critical minerals from across the world that are needed for the defense industry and the energy transition. The US is investing through its development finance arm the US International Development Finance.

The fund will be in search of other investors ranging from sovereign wealth funds to private sector partners and other US agencies, Lewnowski added.

This is not ADQ and Orion’s first link-up: The two firms formed a 50-50 JV based in Abu Dhabi earlier this year to invest USD 1.2 bn in metals and mining over the next four years. The JV planned to target mining companies in Africa, Asia, and Latin America through equity investments, senior debt, royalties, revenue shares, and purchase agreements, and to secure long-term agreements to source essential minerals.

The UAE committed some USD 1.4 tn in investments in the US earlier this year, which included an agreement to build a USD 4 bn aluminum smelter project to provide critical mineral supply chain support and double the US’ aluminum production capacity, and another USD 4 bn gallium smelter project targeting support for semiconductors.

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