Office of Strategic Capital

Extracted Attributes

• Mission

  To attract and scale private capital for national security and bridge the investment gap for critical technology companies.

• Founding Date

  2022-12-01

• Lending Capacity

  $984 million (initial program capacity as of 2025)

• Parent Organization

  United States Department of Defense

• Primary Focus Areas

  Critical minerals, advanced materials, next-generation biotechnology, and quantum science.

• Total Financing Requests Received

  $8.9 billion from over 200 applications

Timeline

• The Secretary of Defense establishes the Office of Strategic Capital to connect next-generation tech developers with private capital. (Source: Secretary of Defense Establishes Office of Strategic Capital)

  2022-12-01

• OSC releases its inaugural Investment Strategy for the 2024 fiscal year. (Source: Office of Strategic Capital (OSC) News Release)

  2024-03-08

• The DoD publishes the first cohort of Licensed and Green Light Approved funds under the SBICCT Initiative. (Source: Office of Strategic Capital (OSC) News Release)

  2025-01-17

• OSC executes its first direct loan aimed at strengthening the U.S. industrial base and protecting critical mineral supply chains. (Source: Office of Strategic Capital (OSC) News Release)

  2025-08-10

• The OSC, under the second Trump administration, grants a $620 million loan to Vulcan Elements for rare earth magnet manufacturing. (Source: Wikipedia: Vulcan Elements)

  2025-11-01

Vulcan Elements

Vulcan Elements is a startup manufacturer of rare earth magnets located in Durham, North Carolina. In November 2025, the Pentagon's Office of Strategic Capital under the second Donald Trump administration granted the company the largest loan it had ever made, at $620 million.

Web Search Results

• Office of Strategic Capital - LinkedIn

  Office of Strategic Capital (1mo Edited): The Office of Strategic Capital announces a $1.25 billion conditional commitment – a combination of conditional U.S. federal loans and private capital investment – with Korea Zinc, the world’s largest nonferrous metal refiner and smelter. This conditional commitment will ensure that the U.S. industrial base maintains continuous, stable access to nearly a dozen critical minerals and elements that are found in common products such as aircraft engine coatings, cosmetics, dental implants, electronic touchscreens, medicines, semiconductors, solar panels, and x-rays. The conditional OSC investment will support Korea Zinc’s continued operations and expansion opportunities, including plans for a U.S.-based processing and smelting facility in the next few [...] U.S.-based processing and smelting facility in the next few years. The Department of War will share additional details as the conditions and milestones for the commitment are met over the coming weeks and months. [Likes: 984, Comments: 18]; Office of Strategic Capital (1mo): The Office of Strategic Capital (OSC) has finalized a conditional joint $700 million loan agreement with Vulcan Elements and ReElement Technologies to expand domestic magnet production. With the increased manufacturing and processing capabilities enabled by OSC’s loans, Vulcan and ReElement anticipate collectively producing up to 10,000 metric tons of Neodymium Iron Boron magnet material in the next several years, thereby significantly reducing the U.S. magnet supply chain gap. Read the official Department of War [...] (OSC) received more than 200 applications, totaling $8.9 billion in financing requests, for its first direct loan product to unlock growth opportunities, expand manufacturing, and modernize operations for American companies. This robust demand, which significantly exceeds the program's current lending capacity of $984 million, highlights the critical need for federal financing to scale the domestic manufacturing of technologies vital to national and economic security. For additional information on the office's inaugural credit offering, please see the official press release here: [Likes: 272, Comments: 3]

• 10 U.S. Code § 149 - Office of Strategic Capital - Cornell Law School

  “(2) to enhance, among personnel of the Department— “(A) understanding of, connectivity with, and access to knowledge about critical and emerging defense industrial base capabilities; and “(B) understanding of the strategic role that venture capital and private equity operations have in shaping future sustainment and modernization requirements for the defense industrial base. “(c) Matching and Tracking Capabilities.—In carrying out program under subsection (a), the Director of the Office of Strategic Capital shall— “(1) [...] “(a) Authorization.— Using the authority provided under section 1599g of title 10, United States Code, the Secretary of Defense, acting through the Director of the Office of Strategic Capital, may carry out a program under which the Director arranges for the temporary assignment of an employee of the Office to a qualifying private-sector organization. “(b) Objectives.—The objectives of the program under subsection (a) shall be— “(1) to enable the Office of Strategic Capital to rapidly acquire industry-specific context and technical competence across high priority technology and industrial focus areas through immersion in highly relevant emerging technology and business ecosystems across the United States; and “(2) to enhance, among personnel of the Department— “(A) [...] “(a) In General.—The Secretary of Defense shall establish a forum to— “(1) convene domestic and international institutional financiers, capital providers, investors, entrepreneurs, innovators, business persons, representatives from across the private sector, relevant United States Government offices, and government and private entities of partner nations; and “(2) allow the exchange of information between the entities referred to in paragraph (1) and the Department of Defense relating to transactions or potential transactions, in accordance with applicable law, and to integrate efforts to achieve coordinated effects to support the national security interests of the United States. “(b) Chair.—

• 10 USC 149: Office of Strategic Capital - OLRC Home

  (1) To the extent and in such amounts as specifically provided in advance in appropriations Acts for the purposes detailed in this subsection, the Secretary of Defense, acting through the Director, may carry out a pilot program under this subsection to provide capital assistance to eligible entities for eligible investments to develop technologies that support the duties and elements of the Office and meet the needs of the Department of Defense. (2)(A) An eligible entity seeking capital assistance for an eligible investment under this subsection shall submit to the Director an application at such time, in such manner, and containing such information as the Director may require. [...] "(1) to enable the Office of Strategic Capital to rapidly acquire industry-specific context and technical competence across high priority technology and industrial focus areas through immersion in highly relevant emerging technology and business ecosystems across the United States; and "(2) to enhance, among personnel of the Department- "(A) understanding of, connectivity with, and access to knowledge about critical and emerging defense industrial base capabilities; and "(B) understanding of the strategic role that venture capital and private equity operations have in shaping future sustainment and modernization requirements for the defense industrial base. [...] "(c) Matching and Tracking Capabilities.-In carrying out program under subsection (a), the Director of the Office of Strategic Capital shall- "(1) use digital automation and analysis capability to optimize the identification, assessment, and placement of participants within the program, which shall include the ability to match and track private-sector organizations with employees of the Office participating in the program in a manner that aligns the priorities, needs, and expertise of such employees, organizations, and the Office; and "(2) establish a database or other digital automation capability that- "(A) enables the Office to identify and track current and former participants in the program;

• Secretary of Defense Establishes Office of Strategic Capital

  OSC will connect companies developing critical technologies vital to national security with capital. Critical technologies such as advanced materials, next-generation biotechnology, and quantum science often require long-term financing to bridge the gap between the laboratory and full-scale production, often referred to as the "Valley of Death" in industry. "We are in a global competition for leadership in critical technologies, and the Office of Strategic Capital will help us win that competition and build enduring national security advantages," said Secretary Austin. "By working with the private capital markets and by partnering with our federal colleagues, OSC will address investment gaps and add a new tool to the Department's investment toolbox." [...] As an office overseen by the Secretary of Defense, the OSC will have an advisory council that includes the Under Secretaries of Defense. The OSC will work across policy, acquisition, and research efforts to increase the amount of capital available to critical technology companies. OSC will also help counter non-market actions by strategic competitors that use U.S. capital markets to advance their own technology goals. [...] In support of the Under Secretary Defense for Research and Engineering, OSC will complement the innovation organizations already executing programs to support critical technology developers. OSC aims to scale investments between science and technology-focused organizations, such as the Defense Advanced Research Projects Agency, and commercially-oriented organizations, such as the Defense Innovation Unit, by increasing the capital available to critical technology companies to help them reach scaled production.

• Office of Strategic Capital (OSC)

  The Office of Strategic Capital (OSC) today announced the release of a Federal Register Notice and accompanying Request for Information (RFI) open for public comment. OSC seeks public input as it prepares to issue loans and loan guarantees for critical technology and supply chain components in support of the office's mission to attract and scale private capital for national security. Read more→ NEWS RELEASE Mar. 8, 2024 ##### OSC Releases Inaugural FY24 Investment Strategy The Office of Strategic Capital released its inaugural Investment Strategy, which lays out how it will approach its funding and investment decisions going forward. Read more→ NEWS RELEASE Sept. 2, 2023 [...] Read Section 903 of the FY24 NDAA ## News & Insights NEWS RELEASE Aug 10, 2025 ##### The Office of Strategic Capital (OSC) announces the recent execution of its first direct loan to strengthen the U.S. industrial base and protect critical minerals supply chains. Read more→ NEWS RELEASE Jan 17, 2025 ##### The DoD is publishing the names of the entire first cohort of Licensed and Green Light Approved funds under the Small Business Investment Company Critical Technologies Initiative (SBICCT Initiative). Read more→ NEWS RELEASE Jan 2, 2025 [...] SECDEF establishes the Office of Strategic Capital (OSC) as a finance organization within the Department of Defense to help the United States build an enduring technological advantage by partnering with private capital providers to accelerate and scale investment in companies developing technologies critical to national security. Read more→ DOD NEWS Dec. 1, 2022 ##### New Defense Office Connects Next-Gen Tech Developers with Much-Needed Capital The Defense Department announced today the creation of the Office of Strategic Capital, or OSC. The new office is meant to ensure that technologies under development right now or in the future, which may be critical to U.S. military requirements, are able to get the funding they need to make it to market. Read more→