The U.S. Army is seeking financing from Wall Street to modernize its infrastructure and technology. Defense Secretary Daniel Driscoll stated that the current budget covers only $15 billion, noting that the $135 billion shortfall could be addressed through private investment funds.
According to BFM Business, Driscoll and Treasury Secretary Scott Bessent held a private meeting with major investment funds such as Cerberus, KKR, and Apollo on October 13. During the meeting, the Army presented investors with unused military lands and idle assets for evaluation. Plans include creative financial solutions such as establishing data centers on military bases and providing computing power in exchange for rare earth elements.
Driscoll told the Financial Times, “We cannot close this gap without creative external solutions.” The Army is particularly interested in rare earth projects, and in this context, the U.S. Army has now become the primary shareholder of MP Materials’ Mountain Pass mine.
This initiative is seen as part of the Trump administration’s increasing engagement with Wall Street. Steve Feinberg, founding partner of Cerberus, who attended the meeting, had been appointed as a deputy at the U.S. Department of Defense in March but had divested his Cerberus shares.
The strategic dimension is linked to relations with China. Restrictions China has placed on rare earth exports reveal U.S. dependence on China for critical minerals. For example, each F-35 fighter jet contains 22 kilograms of samarium magnets, all of which are refined in China. Therefore, the U.S. has signed a strategic cooperation agreement with Australia to diversify its supply chain for critical minerals.
