The U.S. Office of Strategic Capital’s recent $1.25 billion conditional commitment to Korea Zinc marks a turning point in American industrial strategy. But it should also serve as a warning.

Yes, the commitment is significant. It reflects a long-overdue recognition that refining and processing—not just mining—are the real choke points in critical mineral supply chains. And it demonstrates that Washington is finally willing to deploy capital strategically, with conditions and milestones, rather than relying on market faith alone.

But if policymakers hesitate there, they will miss the deeper lesson.

The United States cannot secure its industrial base by substituting one form of foreign dependence for another, even when that dependence rests with allies. A resilient strategy requires something more fundamental: robust domestic processing capacity paired with sufficient U.S.-controlled strategic stockpiles.

Today, nearly every advanced U.S. industry—defense systems, semiconductors, renewable energy, aerospace, medical technologies—

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