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The Security and Resiliency Initiative [00:00:21]

  • The Security and Resiliency Initiative [00:00:21]
  • Supply Chain Vulnerabilities & Macro Background [00:01:46]
  • Priority Capital Allocation & Closed Deals [00:06:37]
  • Advisory Council Governance [00:05:18]
  • Labor Deficits & Industrial Cities [00:11:45]
  • Private Infrastructure Scaling & Venture Capital [00:14:05]
  • Closing & Reference Data [00:18:56]

On this page

  • The Security and Resiliency Initiative [00:00:21]
  • Supply Chain Vulnerabilities & Macro Background [00:01:46]
  • Priority Capital Allocation & Closed Deals [00:06:37]
  • Advisory Council Governance [00:05:18]
  • Labor Deficits & Industrial Cities [00:11:45]
  • Private Infrastructure Scaling & Venture Capital [00:14:05]
  • Closing & Reference Data [00:18:56]
Podcast/May 31, 2026/5 min read/youtu.be

Investing in national security | 30 May 2026 | Alternative Realities | J.P. Morgan Asset Management

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Watch on YouTube ↗
  • Host: Aaronn Mulvihill, Global Alternatives Strategist for J.P. Morgan Asset Management [00:00:08].
  • Guest: Jay Horine, Global Head of the Security and Resiliency Initiative for JPMorganChase [00:00:08].
  • Guest Background: Horine joined J.P. Morgan in 2006 to help run the Power and Utility group under Doug Petno, who then ran Natural Resources []. Horine subsequently ran Natural Resources, led North American operations, and partnered with Dorothee Blessing on the global coverage and industry effort []. He was tapped to lead the Security and Resilience Initiative approximately six months prior to the recording [].

References

  1. Original source (youtu.be)

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Published
May 31, 2026
Read time
5 min read
Progress0%
00:01:16
00:01:25
00:01:37

The Security and Resiliency Initiative [00:00:21]

  • The Scale: A 10-year, $1.5 trillion plan designed to facilitate, finance, and invest in industries critical to national economic security and resiliency [00:00:21].
  • Direct Capital Allocation: Includes $10 billion of direct equity and venture capital investments deployed off J.P. Morgan's own balance sheet without utilizing limited partners (LPs) [00:00:36, 00:04:43].
  • Leadership Change: Todd Combs stepped off the J.P. Morgan Board of Directors, where he previously served, to oversee this $10 billion balance-sheet equity deployment [00:04:43]. Combs previously acted as the Chief Investment Officer for Berkshire Hathaway [00:04:43].
  • Core Objective: Act as an ecosystem catalyst connecting corporations (private and public), state, local, and federal governments, and international allies [00:04:55]. The objective encompasses execution of deals and the structural dissemination of strategic information so external actors can independently deploy capital [00:05:09].

Supply Chain Vulnerabilities & Macro Background [00:01:46]

  • Strategic Context: The initiative's thesis anchors on a quote from a Jamie Dimon op-ed published the prior year: "The United States has allowed itself to become too reliant on unreliable sources of critical minerals, products and manufacturing, all of which are essential for national security." [00:01:51].
  • Host Anecdote: Host Aaronn Mulvihill validated this vulnerability via his personal background running a manufacturing facility during the 2020/2021 COVID-19 pandemic breakout [00:02:08]. The plant experienced systemic shocks securing overseas computer chips and specialty steel, alongside acute labor retention and training deficits driven by health-related exits [00:02:13].
  • Self-Inflicted Mineral Deficits: Horine highlighted that the U.S. previously held global dominance as the top producer and refiner of critical minerals but systematically opted to dismantle this domestic capacity on purpose [00:03:45].
  • Pharmaceutical Dependency Baseline: 90% of critical pharmaceuticals—including key starter materials and active pharmaceutical ingredients (APIs) required to manufacture basic vaccines, antibiotics, and pain medications—are imported from a highly geographically concentrated group of foreign nations [00:10:12].

Priority Capital Allocation & Closed Deals [00:06:37]

The initiative balances multi-sector mandates to avoid scope creep by focusing heavily on un-shored dependencies [00:07:56]:

  • Defense Technology & Minerals: Capital deployment focused immediately on rare earths and critical infrastructure inputs [00:06:44]. J.P. Morgan executed deals for Perpetua and MP Materials to secure supply chains for industrial magnets and elements like antimony [00:07:09]. Verification: Horine notes antimony is fundamentally required to harden lead for defense ammunition [00:07:04].
  • Smelting Partnerships: The U.S. government partnered with a leading Korean corporation to build a zinc smelter in Tennessee, capturing secondary mineral extractions derived from zinc processing [00:08:57].
  • Government Storehouse Projects: Missing insights added regarding federal strategic stockpiling frameworks, specifically referencing government-backed initiatives like Project Vault, Pax Silica, and related baseline material storehouses [00:09:26].
  • Energy Infrastructure: Capital tracking targets the reimagining of domestic nuclear fission plants alongside long-horizon frontier funding into nuclear fusion [00:07:48, 00:11:28].

Advisory Council Governance [00:05:18]

The advisory board acts as an active working council, routinely engaging directly with policymakers like the White House [00:05:34, 00:06:28].

SectorAdvisory Council MemberBackground / Affiliation
Defense & MilitaryPhebe Novakovic [00:05:42] General Chris Cavalli [00:06:14] General Anne Dunwoody [00:06:14]CEO of General Dynamics (Nuclear Submarines) [00:05:42] High-level U.S. Military Command [00:06:14] High-level U.S. Military Command [00:06:14]
Tech & Industrial ManufacturingJeff Bezos [00:05:56] Michael Dell [00:05:56] Jim Farley [00:05:56]Amazon Founder / Technology Infrastructure Dell Technologies Founder / Advanced Hardware CEO of Ford Motor Company [00:05:56]

Labor Deficits & Industrial Cities [00:11:45]

  • The Blueprint: Overcoming structural labor shortages requires merging advanced automation (robotics and AI) with rapid human trade upskilling [00:12:12].
  • Apprenticeship Pipelines: Focus centers on modest-cost, fast-turnaround trade apprenticeships (e.g., precise industrial welding tiers) mapped directly to manufacturing centers [00:12:24].
  • Mega-Facility Ecosystems: Large corporate builders are creating entire localized manufacturing cities to house and train workforces [00:12:50]. Specific projects referenced by Horine include:
    • Micron: Building a $100 billion manufacturing facility located in New York [00:13:04].
    • TSMC: Erecting a massive semiconductor footprint in Phoenix, Arizona [00:13:04].
    • Texas Expansions: Ongoing deep industrial site developments across the state of Texas [00:12:55, 00:13:04].

Private Infrastructure Scaling & Venture Capital [00:14:05]

  • Defense Tech Inversion: Venture capital firms are taking lead financial positions in defense technology, highlighted by rapidly scaling private corporations like Anduril [00:14:16].
  • Capital Engineering: Firms such as Andreessen Horowitz (a16z) are working alongside J.P. Morgan specialists (e.g., Larry Landry) to engineer hybrid funding mechanisms combining VC equity with venture debt [00:14:27]. This lowers the overall cost curve and yields higher capital quantums necessary for building physical factories [00:14:27].
  • Fund Scale Expansion: The financial scale has profoundly shifted away from historical software archetypes ("guys in a garage") to institutional-grade physical infrastructure funding, exemplified by a16z raising a massive $15 billion fund [00:16:58].
  • Operational Velocity Advantage: Private market assets are scaling hardware production exponentially (e.g., jumping from 1 widget to 10 to 100) [00:16:12]. This allows them to bypass the public compliance and public relations constraints that require public market CEOs to defend operations on news networks like CNBC every morning [00:15:39].

Closing & Reference Data [00:18:56]

  • Quarterly Guide: J.P. Morgan Asset Management publishes its official data-dense Guide to Alternatives quarterly, accessible via their primary hub at JPMorgan.com [00:19:08].

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