Provenance
This standalone page was migrated from the February 2026 compendium corpus.
Defense Production Act (DPA) Title III
US federal authority that allows the President to direct private companies to prioritize contracts for materials and services deemed essential for national defense. Title III specifically authorizes the government to make financial commitments (loans, loan guarantees, purchases, and equity investments) to ensure domestic production capacity. DPA Title III awards from 2023-2024 totaled $250 million across 12 recipients.
CHIPS and Science Act
US legislation (2022) providing 39 billion supports manufacturing incentives and 11 billion supports R&D. Awards totaling 30.9 billion across 40 projects had been made by mid-2025, with $6 billion disbursed. The Act’s guardrails prevent recipients from expanding advanced manufacturing in “countries of concern” (China) for 10 years. Excess profits clawback provisions are included.
Office of Strategic Capital (OSC)
DoD entity created to manage credit programs (loans, loan guarantees, technical assistance) for critical technology and mineral investments. Reports to the Under Secretary of Defense for Acquisition and Sustainment. Received 150 million loan to MP Materials for heavy rare earth separation exemplifies its operational model.
Industrial Base Fund (IBF)
DoD fund that received $5 billion with explicit equity authority under the “One Big Beautiful Bill Act.” Supports critical minerals supply chains and defense industrial base capacity. The explicit equity authority is notable — it formalizes the government’s ability to take ownership stakes in defense-critical companies.
National Defense Stockpile
US government reserve of strategic and critical materials. Received 10B EXIM Bank loan — deployment pending verification) by being a physical government stockpile rather than a public-private partnership.
IPCEI (Important Projects of Common European Interest)
EU framework allowing member states to provide state aid for cross-border collaborative projects in strategic sectors. The semiconductor IPCEI (ME-CT) committed 8.1 billion euros in public funding from 14 member states, leveraging 13.7 billion euros in private investment. Requires European Commission state aid approval, creating coordination overhead. Key projects include Intel Magdeburg, TSMC Dresden, and STMicroelectronics/GlobalFoundries Crolles.
JIC (Japan Investment Corporation)
Japanese government investment entity that holds equity positions in strategic companies. Plays a growing role in Japan’s semiconductor strategy, though its investment returns are still nascent (Rapidus not yet producing). Japan’s shift to multi-year stable funding from supplementary budgets (beginning 2025) represents institutional evolution toward a more aggressive co-investment model.
K-CHIPS Act (South Korea)
South Korean legislation providing up to 25% investment tax credits for large firms (up from 8%) in the semiconductor sector. The K-CHIPS ecosystem fund totals approximately 26 trillion won (about $19 billion). Korea’s model relies primarily on tax incentives rather than direct equity, as Samsung and SK Hynix are domestically headquartered, reducing the need for co-investment structures.
Future Made in Australia Act (FMIA)
Australian legislation (2024) committing A$22.7 billion over a decade for renewable hydrogen, critical minerals processing, and battery manufacturing. Establishes a National Interest Framework with two streams: “net zero transformation” and “economic resilience and security.” Includes the Foreign Investment Review Board (FIRB) with enhanced screening for strategic sectors.
Mansion House Compact / Accord (UK)
The Mansion House Compact (July 2023) was a voluntary commitment by 11 major UK DC pension providers to increase allocations to unlisted equities and private markets. The expanded Mansion House Accord (May 2025) added signatories and stronger commitments. Targets 5% of pension fund defaults for UK private markets by 2030 (approximately 30 billion pounds). Legislative backing through the Pension Schemes Bill 2025 enables consolidation into “megafunds.” As of October 2025, actual allocation stood at 0.6% against the 5% target.
Savings and Investment Union (EU)
The EU’s successor initiative to the Capital Markets Union, focused on channeling approximately 35 trillion euros in EU household savings toward productive capital markets investment. The Market Integration Package (December 2025) includes three legislative proposals covering trading integration, asset management harmonization, and innovation enablement. The EU estimates 7 trillion euros in “excess” bank deposits relative to US savings allocation patterns.
Price Floor Guarantee
A government commitment to purchase a strategic material at a minimum price regardless of market conditions, designed to neutralize predatory pricing by dominant foreign suppliers. The DoD’s $110/kg NdPr price floor for MP Materials (10-year term) is the primary example. If market prices drop below the floor, the DoD pays the difference; if prices rise, the DoD shares in the upside. This is effectively a put option that makes private investment in strategic capacity viable.
Offtake Agreement
A government commitment to purchase all or a specified portion of a company’s output, removing demand risk for strategic producers. The DoD’s 100% offtake commitment for MP Materials’ magnet factory output ensures revenue regardless of commercial market conditions.
Government Equity Stake
Direct equity ownership by a government entity in a private company, distinct from grants or loans. The US government holds approximately 9.9% of Intel (non-voting, at $20.47/share) and approximately 15% of MP Materials (preferred convertible stock plus warrants). The expansion of this model to additional CHIPS Act recipients (TSMC, Samsung, Micron) was under consideration as of mid-2025.
DPAP (Defense Production Act Purchases)
The specific mechanism within the DPA Title III framework through which the government makes direct purchases or awards for strategic materials production. Managed within the Industrial Base Policy office of the DoD.
Project Vault
A 2 billion in private capital) announced February 2026 to establish a Strategic Critical Minerals Reserve. Deployment is pending verification — the announcement is confirmed but actual capital deployment and stockpile accumulation remain to be independently verified. Unlike the petroleum reserve (physical caverns), this is a public-private partnership where companies stockpile materials with government backing to shield manufacturers from Chinese supply shocks. Targets mining projects in allied nations including Greenland and Brazil.
Economic Security Promotion Act (Japan)
Japanese legislation (2022) providing the framework for strategic industry investment. Designates 17 strategic sectors for prioritized investment. Combined with the new “Japan Growth Strategy Headquarters,” targets JPY 50 trillion in combined public-private investment over the decade.