The Office of Strategic Capital (OSC) has unveiled its Fiscal Year 2025 Investment Strategy, outlining its approach to prioritizing investments in critical technologies and their supply chains through credit-based financial products. This strategy follows the establishment of OSC by Secretary of Defense Lloyd J. Austin III in December 2022, with a mission to attract private capital for U.S. national security.
In December 2023, Congress formally enacted OSC into law via the National Defense Authorization Act for Fiscal Year 2024, granting it new powers to issue loans and loan guarantees to companies working within 31 Covered Technology Categories listed in statute.
The FY25 Investment Strategy incorporates these authorities and outlines strategic competition arenas, a framework for optimizing capital allocations, and identifies key industry segments for investment focus.
"At this moment of global challenge, the Department of Defense must seek novel and effective ways to keep the United States secure," stated Secretary Austin. "I was proud to establish the Office of Strategic Capital in 2022 so that the Department can promote investment opportunities that make America safer and stronger. This Investment Strategy will ensure that we continue to build the foundation for ongoing technological leadership, economic strength, and American security."
Highlighted industry segments include advanced bulk materials, autonomous mobile robots, battery storage, biochemicals, hydrogen generation and storage, microelectronics manufacturing equipment, nanomaterials and metamaterials among others.
"The OSC FY25 Investment Strategy provides an overarching framework as the office deploys its federal credit tools to build enduring advantages for our nation," said Under Secretary of Defense for Research and Engineering Heidi Shyu. "With the Investment Strategy as a guide, OSC investments will help reduce vulnerabilities to economic chokepoints, support the production of key industrial capabilities, and lead the development of next generation critical technologies."
Alongside this release, OSC is opening applications for its first credit product focused on equipment finance. The application window opens on January 2, 2025, closing on February 3, 2025.
For more information on the FY25 Investment Strategy or application details visit www.osc.mil/credit-program.
