Pakistan has signed a memorandum of understanding (MoU) worth $500 million with an American metals company, the US Strategic Metals (USSM), it emerged on Monday.

The USSM, based in the state of Missouri, is focused on producing and recycling critical minerals, which the United States Department of Energy has defined as essential in a variety of technologies related to advanced manufacturing and energy production.

The USSM is a company that specialises in extracting critical metals from old lithium-ion batteries and mining cobalt, nickel and copper, according to its website. According to the American embassy, the US Department of Energy has defined critical minerals as essential in a variety of technologies related to advanced manufacturing and energy production.

A press release from the US Embassy, published on Sunday, stated that Acting Deputy Chief of Mission Zach Harkenrider accompanied a USSM-led delegation to sign an MoU with the Frontier Works Organisation (FWO) at the Prime Minister’s House.

Speaking about the MoU signing, US Chargé d’Affaires Natalie Baker said, “This signing is yet another example of the strength of the US-Pakistan bilateral relationship that will benefit both countries.”

Speaking about the importance of such bilateral agreements, Baker said that US President Donald Trump’s administration has made forging such deals a key priority, based on the importance of critical mineral resources to American security and prosperity.

“We look forward to seeing future agreements between US companies and their counterparts in the critical minerals and mining sector in Pakistan.”

A statement from the PM House said that the USSM delegation is visiting Pakistan to explore opportunities for expanding the country’s mining operations and assessing the potential for value addition in mineral resources and the development of supporting infrastructure.

“[The] delegation held high-level meetings with [the] prime minister of Pakistan, chief of army staff, minister of petroleum and minister of commerce and were briefed on Pakistan’s vast mineral reserves, including copper, gold, and rare earth elements,” the statement read.

“In this context, two Memoranda of Understanding, focusing on [the] development and processing of critical minerals, including rare earth elements (REEs), and logistics services, were signed.”

The second MoU was signed between the National Logistics Corporation of Pakistan and Mota-Engil Group, a global leader in engineering and construction.

“The current survey of opportunities in Pakistan aims to identify priority markets where Mota-Engil can align with government visions and private sector initiatives. The group seeks to build long-term partnerships that leverage its global know-how while creating value locally through job creation, technology transfer, and sustainable development.”

According to the statement, the partnership will begin immediately with the export of readily available minerals from Pakistan, including antimony, copper, gold, tungsten and REEs.

“The first phase of this deal is envisaged at approximately $500m of investments into Pakistans critical minerals sector,” the statement read.

Pakistan’s relations with the US have been improving, with both nations recently signing trade deals. Islamabad successfully negotiated a reduction in reciprocal tariffs — from 29 per cent to 19pc — after the two nations concluded a trade deal in July.

This was after Trump announced that the US had concluded a deal with Islamabad that would allow the two allies to work together on developing Pakistan’s vast oil reserves.

In April this year, a senior US official had underscored Washington’s strategic interest in Pakistan’s mineral sector, signalling a push for long-term cooperation in the development of critical mineral resources key to American advanced technologies.

“Critical minerals are the raw materials necessary for our most advanced technologies,” Eric Meyer, senior bureau official for the Department of State’s Bureau of South and Central Asian Affairs, was quoted in a statement issued by the US embassy in Islamabad on his visit.