JPMorgan Chase announced Monday a major investment plan targeting industries deemed critical to U.S. economic and national security. Over the next decade, the bank plans to invest $10 billion directly and via venture capital in companies operating primarily in the United States.

The investments will focus on four key sectors: supply chain resilience, energy independence, defense, and strategic technologies such as artificial intelligence and quantum computing. According to JPMorgan, the plan is expected to catalyze $1.5 trillion in total investments over 10 years, exceeding the bank’s prior goal of $1 trillion.

Rationale Behind the Initiative

CEO Jamie Dimon emphasized that the United States has become overly reliant on foreign sources for critical minerals, products, and manufacturing, all essential for national security. “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,” Dimon said.

The initiative is designed to enhance growth for large and mid-sized companies while encouraging innovation and strategic manufacturing in critical sectors. It also aims to ensure reliable access to essential medicines, minerals, defense capabilities, energy, and microchips, all vital for powering emerging technologies like AI.

Context: Trade Tensions with China

JPMorgan’s announcement coincides with renewed U.S.-China trade tensions. On Friday, President Donald Trump threatened to impose triple-digit tariffs on Chinese imports after China tightened its control over rare earth minerals, crucial for electronics, automobiles, and semiconductors. Markets were expected to rebound on Monday following signals of a softer U.S. stance.

The timing highlights how strategic investments in domestic self-reliance could provide a buffer against trade wars, tariffs, and geopolitical standoffs.

Implementation and Market Reaction

To execute the plan, JPMorgan will hire additional bankers and investment staff and create an external council to guide its strategy. Following the announcement, JPMorgan shares rose more than 1% in premarket trading.

Dimon stressed the urgency of action, calling for collective effort: “Hopefully, once again, as America has in the past, we will all come together to address these immense challenges. We need to act now.”