Video Series:
Security and Resiliency in Action
JPMorganChase is championing long-term economic security and resiliency by supporting critical industries including supply chain and manufacturing, defense and aerospace, energy independence and resilience, strategic and frontier technologies, and pharma and healthtech.
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Defense priorities are shifting toward technology
In the current defense environment, technology cycles are tightening. Priority areas span frontier tech including AI and cyber, drones, sub-sea systems and sensors, air defense and space-enabled capabilities. “Technological innovation and military readiness are inextricably linked,” said Derek Chollet, head of the JPMorganChase Center for Geopolitics. The implication is that the industry is no longer bounded by “traditional primes” alone; it increasingly intersects with frontier technology firms that may not self-identify as defense companies.
As focus on technology increases, investment is flowing toward capabilities that can be fielded faster and adapted in real time. “In as long as I’ve been covering this sector — over 20 years — there are more venture capital-backed, next-generation technology companies emerging than I’ve seen at any other point in time,” said Mark Marengo, head of Diversified Industries Investment Banking at J.P. Morgan.
“Technological innovation and military readiness are inextricably linked.”
Derek Chollet
Head of the JPMorganChase Center for Geopolitics
Defensive resilience begins with supply chains
The defense industrial base faces headwinds including supply chain fragility and the practical challenge of ramping up production when demand spikes. The common thread is speed: accelerating solutions requires capital, but also coordination across procurement, production, permitting and talent. Capital does not translate into delivered capability if approvals, suppliers and labor pipelines do not keep pace.
One practical challenge lies in coordinating procurement of critical minerals, which are essential for advanced defense systems like combat aircraft and naval warships. The supply chain for critical minerals is highly concentrated in China, where 91% of refined rare earths are sourced. Diversifying the supply chain can help mitigate risks from bottlenecks by onshoring and nearshoring key resources.
Space and next-generation ventures are reshaping defense and aerospace
Satellite technology has become a cornerstone of modern defense, underpinning command and control as well as communications networks that are vital to military operations. Disruption of satellites poses a real threat, with far-reaching implications for national security. The investment thesis for defense and aerospace, therefore, extends well beyond the development of physical hardware. It encompasses the creation of resilient networks, advanced sensing capabilities and secure communications systems that can withstand and adapt to evolving threats.
The Security and Resiliency Initiative connects multiple teams — including a technology group and an Innovation Economy group — that, together, enable coverage of both traditional defense industrial base participants and younger defense tech startups. By combining industry expertise, strategic guidance and access to capital, J.P. Morgan is able to support companies at every phase of development, from early-stage startups to established industry leaders.
“In as long as I’ve been covering this sector — over 20 years — there are more venture capital-backed, next-generation technology companies emerging than I’ve seen at any other point in time.”
Mark Marengo
Head of Diversified Industries Investment Banking, J.P. Morgan
Public-private partnerships are the future of defense
The U.S. government is taking equity stakes in select companies and working closely with the private sector to catalyze investment in areas deemed critical for national security. This includes the public-private partnership between the U.S. Department of Defense and MP Materials, which aims to accelerate the buildout of an onshore rare earths supply chain.
Such actions reflect a recognition that the scale and complexity of today’s challenges — ranging from supply chain vulnerabilities to technological innovation — can’t be addressed by government alone. Instead, they require a coordinated approach that leverages the strengths of both public and private actors.
“The private sector has an indispensable role to play in trying to ensure that the right investments are getting made in the right companies to ensure that we’re innovating for our defense future.”
Derek Chollet
Head of the JPMorganChase Center for Geopolitics
Security and Resiliency Initiative
Defense readiness depends on a connected ecosystem: frontier tech, strategic materials, manufacturing capacity and resilient networks that can scale under pressure. The Security and Resiliency Initiative connects these themes to coordinate across government, private industry and multiple pools of capital.
Learn more about the Security and Resiliency Initiative and how the firm is facilitating, financing and investing in critical industries to strengthen economic security and resiliency.
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