JPMorgan Eyes Defense Startups & Legacy Firms for $10B Investment

JPMorgan Chase Launches Ambitious $10 Billion Defense and Advanced Manufacturing Investment Initiative

WASHINGTON — JPMorgan Chase is making a significant commitment to U.S. national security through a new $10 billion direct investment program targeting defense and advanced manufacturing over the next decade. The initiative represents a substantial private sector response to what executives describe as critical gaps in American industrial capacity and capability.

The $10 billion investment commitment is part of JPMorgan’s broader $1.5 trillion Security and Resilience Initiative announced in October by CEO Jamie Dimon. This distinction is important: the $10 billion represents the bank’s own capital, not third-party funds, while the broader $1.5 trillion figure includes financing, advisory services, and capital raised on behalf of client companies.

Jay Horine, who leads the Security and Resilience Initiative, and Mark Marengo, overseeing the aerospace and defense portfolio, outlined the strategy in recent interviews. The bank has already deployed capital, announcing a $75 million equity investment in Perpetua Resources, aimed at establishing domestic production of antimony, a critical mineral with defense applications in batteries and ammunition.

SubMARINE PRODUCTION: THE PRIORITY

Executives identified nuclear submarine production as a top investment focus. The Department of Defense has set an ambitious goal of increasing submarine production from two per year to three annually—a target that requires substantial infrastructure investment.

“We don’t have the infrastructure in place to accommodate that today,” Marengo explained. “It will require significant investment in facilities, processes, efficiency improvements, and workforce development, including specialized skills like welding.”

This expansion has ripple effects throughout the supply chain. Hundreds of smaller suppliers lack the capital to expand production capacity proportionally. JPMorgan sees equity investment opportunities alongside these suppliers to help expand their industrial footprint.

WEAPONS PRODUCTION AND SUPPLY CHAIN RESILIENCE

War game scenarios published by Pentagon strategists suggest the U.S. military could exhaust available missiles and munitions within a week during a major conflict with China. This supply chain vulnerability represents another critical investment area for JPMorgan.

“We’re spending considerable time within all supply chains to ensure security, adequate capacity, and resilience to meet those needs,” Marengo noted. The bank is evaluating both infrastructure investments and capital requirements across ammunition, missile, and munitions production ecosystems.

STARTUPS AND LEGACY SUPPLIERS: A BOTH/AND APPROACH

A notable aspect of JPMorgan’s strategy is the commitment to fund both venture-backed defense technology startups and established defense contractors. Marengo observed that he’s never seen more VC-backed defense companies in his 30-year career, yet emphasized the dual strategy’s necessity.

Legacy suppliers often hold critical Defense Department certifications—qualifications difficult and time-consuming to obtain. Emerging technology companies may lack these qualifications and the production scale required for immediate impact. JPMorgan’s capacity to invest across both segments provides strategic flexibility.

PUBLIC-PRIVATE PARTNERSHIP MODEL

Executives highlighted increased receptiveness from the current administration and Department of Defense to private sector participation. They referenced the MP Materials precedent, where government and private capital invested alongside each other in critical mineral production.

“This administration understands the private sector can be part of the solution,” Marengo stated. “We’re exploring debt financing, equity financing, and partnership structures where government and private capital work together.”

TIMELINE AND SCOPE

While specific investment timelines remain flexible, executives indicated they’ve received hundreds of company inquiries and are consulting extensively with Pentagon, Department of Commerce, and other government agencies. The bank is coordinating across healthcare, natural resources, and frontier technologies alongside defense investments.

This initiative signals a significant alignment of private capital with national security imperatives, potentially reshaping defense industrial base investment patterns over the next decade.

Source ID: SRCE-2025-1764601486240-1042